44.2% Better Than Last Year, In Fact
It seems that having product available for sale in large amounts is the key to Samsung’s impressive Q1 earnings. Compared to the beginning of last year, their operating profits are up 44.2%, however that doesn’t tell the full story of 2020. This is now Samsung’s best quarter in the entire history of the company, the latest in a string of records. Looking at Q4 of 2020, this quarter is a mere 2.7% better which indicates just how impressively Samsung performed throughout 2020.
The new S21 is a big part of this, coming out at a lower price than expected and with enough stock that those who wanted one to be able to purchase one. Samsung managed this by producing the vast majority of the components on their own fab lines, avoiding the supply chain interruptions which have plagued many of their competitors.
It wasn’t all roses, their Texas fab was shut down due to the heavy weather experienced in the state back in February. That shutdown is estimated to have cost Samsung $264m in business, however that fab is now back up and running. As we approach quarterly earnings season we shall see how others have fared; likely not all made out as well as Samsung.
Samsung has pre-announced its Q1 2021 earnings and predicted $58.1bn of consolidated sales and $8.3bn of operating profit.