Samsung sees chip profits up, mobile sales down in Q2 on chip shortage

Samsung Electronics Co Ltd said it expects chip profits to increase but mobile profits to drop in the current quarter, as a global chip shortage affects its businesses in different ways.

Samsung, which reported a 46% rise in first quarter profit, said it expected memory chip earnings to improve “significantly” in the second quarter, as “market conditions improve on the back of strong server demand” as well as robust demand by other applications.

However, profit and sales at its mobile business are likely to drop in the second quarter versus the first due to supply issues for some components and a fall in flagship smartphone sales, the world’s top maker of memory chips said in a statement.