Samsung makes record profit in the first quarter of 2021

Samsung made $8.8 billion in profit during the first quarter of this year, which is a record, according to the company. These results are the result of rising sales of consumer electronics and flagship smartphones, among others.

The memory division’s profits will be lower, according to Samsung, due to production problems at the chip factory in the US, Texas, falling prices for nand memory chips and the costs associated with scaling a production line.

The South Korean company expects profits from memory chip manufacturing to rise “significantly” in the second quarter as demand from the server market picks up and most manufacturing issues have been resolved. Samsung will also be scaling up production capacity for its nano-dram chips and sixth-generation v-nand memory chips during this second quarter, as well as its ultraviolet lithography chip manufacturing process.

Samsung’s mobile business also performed well. This division posted approximately $3.96 billion in profit in the first quarter of 2021, the highest result since the first quarter in 2014 and 66 percent more than in the same period last year. Samsung estimates that the profit expectations of the mobile division will be lower in the second quarter. The company said that was due to supply issues for some parts and a declining overall trend in flagship sales in the quarter.