Samsung forecasts Q1 operating profit up 50.3 percent year-on-year

SEOUL - Samsung Electronics expects operating profits for the first quarter to rise 50.3 percent, the South Korean tech giant said in a statement Thursday, despite global supply chain woes.

The world's biggest smartphone maker forecast 2022 first-quarter operating profits of about 14.1 trillion won ($11.6 billion), up from 9.4 trillion won in the same quarter last year.

Samsung did not provide details on the performance of its various divisions. The company is expected to release its full results on April 28.

Analysts said the forecast was likely driven by strong performance from its smartphone division and solid demand for its memory chips.

"Price decline in memory chips will be contained on the back of stronger than expected demand," Kim Un-ho, an analyst at IBK Investment & Securities said in a report.

While the coronavirus pandemic has wreaked havoc on the world economy, it has helped many tech companies boom.

The shift to working from home during the pandemic has boosted demand for devices powered by Samsung's chips as well as home appliances such as televisions and washing machines.

Agence France-Presse

Apple expected to launch new low-cost 5G iPhone

NEW YORK - Apple Inc will likely announce a new low-cost version of its iPhone SE with 5G capabilities at its annual spring product launch event on Tuesday, analysts say.

The iPhone maker is also expected to launch a new version of the iPad Air and a high-end Mac Mini at the event.

Apple's iPhone SE is currently priced at $399. CFRA Research analyst Angelo Zino said Apple could attract more price-sensitive consumers if the price remains the same for the new version.

"It could potentially provide upside to our unit iPhone estimate for 2022 if they keep that price point unchanged," Zino said. "The iPhone SE really caters well to a lot of first-time buyers on the iPhone ecosystem that may be younger individuals, where their parents are going out there buying that device."

The new phone would be the first update to the iPhone SE model in two years and is rumored come with an improved camera and a faster processor.

The United States, Japan and Western Europe have been the top markets for iPhone SE sales in recent years, said analyst Ryan Reith of IDC. Reith said these regions will likely remain the top markets after the anticipated launch of the third-generation iPhone SE.

"We probably won't see big geography shifts," Reith said, adding that he expects the new iPhone SE to account for 10 percent of iPhone shipments globally after the launch.

IPhones with 5G capabilities have been a big part of Apple's focus for its flagship product, with its latest-model iPhone 13 showing off custom 5G antennas and radio components for faster speeds as customers look for powerful devices with better connectivity.

But some analysts still point to the limitations of 5G technology globally.

"Currently in most countries in the world, that (5G) technology simply isn't good enough to create a unique and differentiated experience ... the fact that the iPhone SE comes with 5G is more a way to enable users to leverage 5G when that technology evolves over the next year or two," Canalys research analyst Runar Bjørhovde said.

Zino said he does not anticipate services or accessories launches at the Tuesday event, though an unexpected announcement in the services sector is still possible.

Apple usually hosts three events every year to launch new products, starting in spring and announcing the launch of its latest iPhone range just before the holiday shopping season.

In response to the Russian invasion of Ukraine, Apple said on March 1 it has paused all product sales in Russia. The company also said it has stopped all exports into its sales channels in the country and limited Apple Pay and other services in Russia.

The Russian state media, RT News and Sputnik News, are no longer available for download from the Apple Store outside Russia.

-reuters-