SEOUL— Samsung Electronics Co. expects a 53% rise in operating profit for the second quarter, lifted by strong demand for memory chips that offset weaker device sales hurt by component shortages.
The world’s largest smartphone and memory chip maker forecasts operating profit of 12.5 trillion South Korean won, equivalent to about $11 billion, for the quarter ended June 30. Samsung also projects revenue of 63 trillion won, up 19% from the prior year.
The South Korean firm’s outlook handily topped market expectations and indicated ongoing strength for tech giants—and especially chip makers that have seen greater pricing power during a historic supply crunch.
A year ago, in the Covid-19 pandemic’s first months, Samsung saw a double-digit drop in revenue for electronics products such as smartphones and televisions. But demand for components surged as people shifted more of their lives online. Results have remained strong ever since.
Analysts estimates gathered by S&P Global Market Intelligence were about 10.9 trillion won in operating profit and 61.2 trillion won in revenue.