Samsung Net Profits for Q1 Surge to Record Highs
Samsung made the announcement that their net profits surged massively, increasing more than six fold during Q1. This is a record high based upon the strong demand as well as higher prices for memory chips. Additionally the increased sales of the mobile phones and flat screen TVs had their hand in the growth.
Samsun made profits of almost $3.6 billion USD or $3.99 trillion won in Q1. The year prior Samsung recorded net profits of only $582 billion won to put some things in perspective. This puts the very latest figure at a record high for the company.
First quarter sales totaled a little over $34.6 trillion won which is a 20.8% rise from the almost $28.7 trillion which was reported just a year prior.
The Samsung Electronics Company is a definite major player and force in the global technology industry. Samsung ranks as the largest of manufacturers in:
• Computer memory chips
• Flat screen TVs
• Liquid crystal displays
They are the number two player in the global mobile phone market only falling behind the Finland giant Nokia.
Samsung stated in a release that the sales of their semiconductor business had jumped a total of 57% within Q1. The company had stated that the tight supply along with the strong demand caused prices for the DRAM memory chips to go up. DRAMS are used in personal computers.
The company also citied that the solid demand for the NAND flash memory chips in line with the consumer purchases of the smartphones and the mobile application products. The NAND are something that is used in devices like music players, smartphones and digital cameras.
Strong demand for mobile products is something that has continued despite the weak seasonality. In the mobile phone segment Samsung sold almost 65 million of them in Q1 which is up 40% from the prior year. The demand is predicted to increase into the Q2 following right in line with the global economic recovery.
Samsung sold almost 8.5 million units of their flat screen TVs in Q1 which is a 47% increase from the year prior. Samsung is predicting that the demand is going to grow by 34% in Q2.
The results have inspired investors sending the shares up 2.9% higher.
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