SSNLF - As Apple Stares At First Revenue Drop In A Decade Samsung Predicts Stellar 10-Fold Q1 Profits Amid Surging Chip Prices | Benzinga
As the tech industry navigates through a period of fluctuating chip prices, Samsung Electronics (OTC:SSNLF) has emerged with a forecast that signals a robust first-quarter performance, potentially setting a positive tone for its financial year. This comes at a time when Apple Inc. (NASDAQ:AAPL) is anticipating a drop in its revenue for the first time in a decade.
What Happened: Samsung Electronics is expecting a significant increase in its first-quarter operating profit, with a projection exceeding 10 times the previous year’s figure, as chip prices see a recovery, Reuters reported on Friday.
The anticipated profit surge to 6.6 trillion won ($4.89 billion) marks the highest operating profit for the company since the third quarter of 2022, a 931% jump from the same quarter last year. This performance surpasses the 5.7 trillion won ($4.21 billion) LSEG SmartEstimate and comes amid a rebound in memory chip prices.
Meanwhile, Samsung’s American rival Apple expects its revenue and earnings per share (EPS) in the March 2024 quarter to drop for the first time in a decade due to declining iPhone sales. Analysts have pointed out that Apple's struggles in China are less about the company and involve a much bigger “geopolitical kerfuffle.”
Despite the positive guidance, Samsung shares fell by 1.3% early ...