Samsung Electronics Co. posted profit that beat analysts’ estimates as rising demand for memory chips and displays more than offset a slump in smartphones.
Operating income fell 31% to 5.9 trillion won ($5.4 billion) in the three months ended March, the Suwon, South Korea-based company said in a filing Tuesday. That compares with the 5.5 trillion won average of 36 analyst estimates compiled by Bloomberg. The shares rose.
Selling components to other vendors is helping Samsung weather a slide in the global smartphone market, where Apple Inc.’s new iPhones and inexpensive devices from Xiaomi Corp. are winning customers.
With earnings falling for six straight quarters, the company is counting on Friday’s debut of its new Galaxy S6 models to lure back buyers and drive sales of chips and displays.
“Robust sales of memory chips for mobile devices and servers contributed to the stronger-than-expected profit,” said Greg Roh, a Seoul-based analyst at HMC Investment Securities Co.
“Tighter marketing spending at mobile also contributed to the higher result and second-quarter results will be a lot higher, largely helped by S6 smartphones.”
Sales declined 12 percent to 47 trillion won in the quarter, the company said today. That compares with the 50.1 trillion-won average of 38 estimates.
The company’s shares rose 0.7 percent to 1,480,000 won as of 9:22 a.m. in Seoul. The stock has gained 12 percent this year after dropping 3.3 percent in 2014.
Samsung didn’t provide net income or details of divisional earnings. Audited results are scheduled for later this month.
Smartphone Sales
Operating income at the mobile unit probably fell to 2.3 trillion won on sales of 27.1 trillion won, according to the median estimate of five analysts surveyed by Bloomberg News.
Samsung probably shipped 81 million smartphones worldwide in the first three months of 2015, rising 7 percent from the fourth quarter, Daewoo Securities said in a March 27 report.
Despite slower sales of premium smartphones, demand for cheaper Galaxy models combined with reduced marketing expenses during the quarter probably helped slow the unit’s slide.
Samsung added $11 billion of market value in March after unveiling the Galaxy S6 and S6 Edge, with a multisided screen, at the start of the month. The new phones will be released initially in 20 countries from April 10.
Chip Demand
Earnings from the semiconductor unit, which supplies memory and processor chips to Apple and other mobile device makers, was about 2.7 trillion won in the first quarter on sales of 11.1 trillion won, according to the analyst survey.
Samsung’s use of its own processor chips in the S6, instead of those from Qualcomm Inc., is expected to help the System LSI unit post a profit this year while the company will also benefit from new orders from other vendors.
Samsung will make the main chip in the next iPhone model, regaining a customer previously lost to Taiwan Semiconductor Manufacturing Co., people with direct knowledge of the matter said this month.
The display unit, which includes liquid-crystal displays and screens using organic light-emitting diodes, probably had operating profit of 450 billion won on increased demand for its ultra-thin displays used by lower-end smartphones, according to the analyst survey.
The company’s OLED displays, which offer sharper images at lower power than most LCDs, were mainly used for Samsung’s high-end smartphones, including S6 and S6 Edge with three-sided screens.
Operating profit at the consumer-electronics division, which oversees TVs and appliances, probably dropped to 80 billion won in the quarter, according to the survey.
For more business news, tune in to AWANI Biz on Astro channel 501.
Bloomberg
Tue Apr 07 2015
![Samsung profit beats estimates with demand rising for its chips and displays Samsung profit beats estimates with demand rising for its chips and displays](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2013-03/41364566074_295x200.jpg)
Samsung Electronics faces rising demand for memory chips and displays.
![Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41715247870_SohThianLaijpg.jpg)
Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM
Pemimpin perniagaan dan usahawan daripada golongan belia merupakan pemacu penting yang akan membentuk masa depan industri pembuatan Malaysia, kata Presiden Persekutuan Pekilang-Pekilang Malaysia.
AWANI Tonight: 16 July 2024
#AWANITonight with @Hafiz_Marzukhi
1. Govt mulls amending Penal Code to deal with cyberbullying
2. England's Southgate resigns after Euro 2024 Final defeat
#AWANIEnglish #AWANINews
1. Govt mulls amending Penal Code to deal with cyberbullying
2. England's Southgate resigns after Euro 2024 Final defeat
#AWANIEnglish #AWANINews
![Empat individu termasuk pasangan pempengaruh bebas tahanan reman Empat individu termasuk pasangan pempengaruh bebas tahanan reman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41716613114_TBsprm.jpg)
Empat individu termasuk pasangan pempengaruh bebas tahanan reman
Kesemua individu juga perlu hadir ke pejabat Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) sebulan sekali untuk melaporkan diri.
![KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81719822088_ZambryAbdKadir.jpg)
KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat
KPT mengalu-alukan cadangan PAC berhubung pelaksanaan dan pemakaian Garis Panduan Pelaburan dan Pembiayaan oleh Universiti Awam 2024, kepada anak-anak syarikat di bawah seliaan kementerian itu.
![SUKMA 2024: Sepak takraw wanita mungkin digugurkan SUKMA 2024: Sepak takraw wanita mungkin digugurkan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61720679430_AbdulKarimRahman.jpg)
SUKMA 2024: Sepak takraw wanita mungkin digugurkan
Sepak takraw wanita berpasukan berkemungkinan akan digugurkan daripada senarai acara temasya Sukan Malaysia (SUKMA) 2024 berikutan jumlah penyertaan kurang daripada jumlah minimum yang ditetapkan.
10 Berita Pilihan - (16 Julai 2024)
Antara pelbagai berita dalam dan luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
![Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/41702437730_maut.jpg)
Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok
Enam orang ditemukan maut di sebuah hotel di Bangkok, Thailand pada Selasa laporan media tempatan yang memetik polis Bangkok.
AWANI 7:45 [16/07/2024] - Suspek dibawa ke lokasi | Selamat tinggal rakyat Malaysia | Harimau Malaya hilang taring?
- Polis sahkan suspek bunuh Kartini anggota polis.
- Pan-Gon enggan dedah punca letak jawatan.
- Faisal Halim sedih mentor Pan-Gon undur diri.
- Pakai reben putih di Parlimen, tak salah.
- Pan-Gon enggan dedah punca letak jawatan.
- Faisal Halim sedih mentor Pan-Gon undur diri.
- Pakai reben putih di Parlimen, tak salah.
![Isteri calon gandingan Trump letak jawatan di firma guaman Isteri calon gandingan Trump letak jawatan di firma guaman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41721139141_TBJDUSHA.jpg)
Isteri calon gandingan Trump letak jawatan di firma guaman
Usha Vance, isteri kepada Senator J.D. Vance yang dipilih sebagai calon gandingan bekas presiden Amerika Syarikat (AS) Donald Trump awal minggu ini, telah meletakkan jawatannya di sebuah firma guaman,
![Najib fail permohonan di mahkamah rayuan cabar Titah Adendum Najib fail permohonan di mahkamah rayuan cabar Titah Adendum](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-05/71683779541_TBNAJIBRAZAK.jpg)
Najib fail permohonan di mahkamah rayuan cabar Titah Adendum
Berdasarkan sistem e-filing mahkamah, rayuan itu telah ditetapkan untuk pengurusan kes pada 7 Oktober ini.
![WTCKL diiktiraf International Business Review ASEAN Awards WTCKL diiktiraf International Business Review ASEAN Awards](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-04/51617381792_IrmohizamIbrahim.jpg)
WTCKL diiktiraf International Business Review ASEAN Awards
Irmohizam menzahirkan ucapan jutaan terima kasih kepada The International Business Review atas pengiktirafan berkenaan.
![COVID-19: Pelanggan tembak tiga pekerja restoran makanan segera selepas dilarang makan dalam restoran COVID-19: Pelanggan tembak tiga pekerja restoran makanan segera selepas dilarang makan dalam restoran](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-05/41588824707_McDshoot.jpg)
COVID-19: Pelanggan tembak tiga pekerja restoran makanan segera selepas dilarang makan dalam restoran
Suspek diberitahu oleh pekerja restoran itu bahawa ruang makan ditutup dan hanya 'drive-thru' sahaja dibuka.
![Bertahun bina empayar, Asyraf Khalid kongsi di sebalik jatuh bangun dunia niaga Bertahun bina empayar, Asyraf Khalid kongsi di sebalik jatuh bangun dunia niaga](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-04/61587112329_asyrafkhalidmutya.jpg)
Bertahun bina empayar, Asyraf Khalid kongsi di sebalik jatuh bangun dunia niaga
Menurut pengusaha jamu Mutyara Beauty itu, dia sentiasa dilontarkan dengan tanggapan negatif sesetengah pihak kononnya hanya bernasib baik kerana pengaruh bapanya.
![COVID-19: RM4.5 billion fund to help small, medium enterprises and micro entrepreneurs COVID-19: RM4.5 billion fund to help small, medium enterprises and micro entrepreneurs](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-03/51585305758_TBIks.jpg)
COVID-19: RM4.5 billion fund to help small, medium enterprises and micro entrepreneurs
Prime Minister said the allocation would be channelled through five key initiatives.
![Maxis Business SPARK Summit tampil pemikiran bersama dalam memacu transformasi digital di Malaysia Maxis Business SPARK Summit tampil pemikiran bersama dalam memacu transformasi digital di Malaysia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-11/51572950943_MaxisBusinessSPEAR.jpg)
Maxis Business SPARK Summit tampil pemikiran bersama dalam memacu transformasi digital di Malaysia
Lebih dari 500 pemimpin perniagaan tempatan dan antarabangsa dari sektor Korporat, Kerajaan dan PKS tempatan menyertai Maxis Business SPARK Summit 2019 pertama.
![Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2018-03/41520591031_ManifestoPH.jpg)
Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH
Dalam kaji selidik yang melibatkan 390 responden itu, 50 peratus pemimpin korporat Cina berpuas hati, diikuti pemimpin Melayu (39 peratus), dan pemimpin India (38 peratus).
![Syarikat tembakau terbesar dunia seru perokok berhenti merokok Syarikat tembakau terbesar dunia seru perokok berhenti merokok](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-08/71566451489_Rokok.jpg)
Syarikat tembakau terbesar dunia seru perokok berhenti merokok
Kaji selidik terbaharu oleh Philip Morris International Inc. (PMI) adalah sebahagian daripada kempen 'Unsmoke' yang menyeru agar semua berhenti merokok.
![Kerjasama SME Bank, TM dan Commerce.Asia bantu usahawan dalam transformasi digital Kerjasama SME Bank, TM dan Commerce.Asia bantu usahawan dalam transformasi digital](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-05/71556766257_SME.jpg)
Kerjasama SME Bank, TM dan Commerce.Asia bantu usahawan dalam transformasi digital
SME Bank bersama Telekom Malaysia Berhad dan Commerce.Asia menandatangani dua Memorandum Persefahaman (MoU) pada Selasa.
![Pengasas produk The Ordinary ditemui mati Pengasas produk The Ordinary ditemui mati](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-01/51548157684_deciem.jpg)
Pengasas produk The Ordinary ditemui mati
Sehari sebelum kematiannya, Brandon Truaxe telah memuat naik beberapa video berkelakuan pelik ke Instagram.
![Here are the three considerations we had when we did the Budget - Tony Pua Here are the three considerations we had when we did the Budget - Tony Pua](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2018-11/61541753047_AMBANK.jpg)
Here are the three considerations we had when we did the Budget - Tony Pua
Damansara MP Tony Pua explained the three major considerations on what went into the development and execution of Budget 2019.