Samsung Electronics' first-quarter 2021 operating results saw profits increase due to robust sales of smartphones and other sets and increased OLED utilization, achieving its highest-ever first-quarter performance.

Samsung Electronics announced its first-quarter 2021 financial results on the 29th. According to the results, consolidated sales reached KRW 65.3885 trillion, an 18.2% increase year-on-year, and operating profit reached KRW 9.3829 trillion, a 45.5% increase year-on-year. Operating profit increased 46.2% year-on-year to KRW 7.1417 trillion.

Despite the impact of the display off-season, sales in the first quarter increased by 6.2% compared to the previous quarter, driven by brisk smartphone sales, recording the highest sales ever for the first quarter.

Compared to the same period last year, sales of set products, including smartphones, TVs, and home appliances, increased by 18.2%.

Operating profit increased compared to the previous quarter, despite the display off-season and a decline in semiconductor performance, driven by improved profitability in smartphones and CE (Consumer Electronics).

Both operating profit and profit margin improved compared to the same period last year.

Semiconductor earnings declined quarter-on-quarter, despite strong memory shipments centered on PCs and mobile devices, due to continued declines in NAND prices and some initial costs for new lines, as well as production disruptions caused by power outages and outages at the Austin line.

Display profits decreased compared to the previous quarter due to slowing demand for small and medium-sized products during the off-season, but profits improved significantly compared to the same period last year due to increased OLED operating rates.

Wireless saw a significant increase in profits compared to the previous quarter and the same period last year, driven by a significant increase in sales of flagship and mid- to low-priced smartphones, as well as an expanded contribution from the Galaxy ecosystem (Device Eco) product line, including tablets, PCs, and wearables.

The network also maintained solid performance thanks to the continued expansion of 5G overseas.

CE's profits increased compared to the previous quarter and the same period last year, driven by continued pent-up demand for home appliances and increased sales of premium TV products.

In terms of the first quarter welcome sentiment, the US dollar weakened against the Korean won, while the euro and major emerging market currencies strengthened.

This had a positive impact on the set business, but the dollar The negative impact on the parts business due to weakness was offset by a minimal positive impact on overall operating profit.

In the second quarter, semiconductor performance is expected to grow due to improved memory market conditions, but IM (IT & Mobile Communications) performance is expected to slow down due to factors such as a decline in the impact of new wireless product launches.

Memory performance is expected to improve due to strong server demand.

The foundry's Austin line is operating normally, but System LSI is expected to continue to experience some of the impact of the foundry production disruption from the previous quarter.

Display sales of small and medium-sized panels are expected to decline due to factors such as the seasonal off-season for smartphones and component shortages.

Wireless is expected to see a decline in sales and profitability due to declining flagship sales and issues with parts supply, but the company plans to minimize the impact by actively leveraging its global supply chain management (SCM) capabilities.

For TVs, CE will focus on expanding sales of new products such as 'Neo QLED' and securing demand for sports events, while for home appliances, it will pursue continued growth through the global expansion of BESPOKE.

In the second half of the year, the components business is expected to see an improvement in market conditions, and the company plans to continue to enhance its product and technological leadership, while the set business plans to pursue premium leadership and strengthen its lineup.

However, global macroeconomic risks, such as demand uncertainty related to COVID-19, are expected to persist.

The memory market is expected to continue its favorable business environment, including strong server and mobile demand, and Samsung Electronics plans to enhance its market leadership by accelerating the transition to 15nm DRAM and 6th-generation V-NAND and expanding the application of EUV (Extreme Ultra Violet).

System LSI is supplying through strengthening cooperation with domestic and international foundries. Maximizing and foundry plans to expand supply capacity through full-scale mass production at the Pyeongtaek Line 2.

Displays will continue to expand OLED adoption and build a foundation for entry into large-panel QD displays.

Wireless plans to focus on securing solid profitability through the expansion of foldable devices, strengthening its low- to mid-priced 5G lineup, and growth in tablets, PCs, and wearables.

The network plans to respond to domestic and international 5G commercialization and expand new global businesses.

Amidst ongoing demand uncertainty related to COVID-19, CE plans to focus on securing profitability by expanding sales of premium TVs, such as the Neo QLED and ultra-large-size TVs, and the New Life line of home appliances.

Facility investment in the first quarter was KRW 9.7 trillion, with KRW 8.5 trillion in semiconductors and KRW 700 billion in displays.

In the case of memory, investment was focused on expanding advanced processes and transitioning processes in Pyeongtaek and Xi'an to meet increasing demand, while in the foundry sector, investment was focused on expanding advanced processes such as EUV 5nm.