Strong Galaxy S21 sales drive Samsung to highest mobile profit in years
Recognition: Robert Triggs / Android Authority
- The Samsung Mobile Division posted the highest quarterly profit since 2014.
- The Galaxy S21 series boosted the company’s mobile sales performance.
- The Galaxy A-series, tablets and wearables also contributed to a strong quarter.
According to data from several research firms, it appears that almost every tech company has a better start to 2021 than 2020. However, some companies like Samsung are doing better than they did before the pandemic.
Samsung’s wireless business posted earnings of 4.4 trillion won (~ $ 3.9 billion) in the first quarter of 2021, its highest annual figure in seven years Reuters. That is also an increase of 66% compared to the previous year.
According to Samsung’s investor note, “increased sales of flagship models” and “increased sales of mass-market models” were the main drivers, particularly in the US and Japan. The company also names the Galaxy S21 series as a star performer.
The success of the Galaxy S21 series, at least against the underperforming Galaxy S20 series, was evident pretty soon after launch. The Galaxy S21’s sales in Korea were reportedly 30% higher than its post-launch predecessor. In the UK, the phone series also broke pre-order records for the company. They were popular early on in the United States too. Compared to the S20, three times as many Galaxy S21 devices were sold in the first month after its release.
While the Galaxy S21 series has improved on numerous aspects of the S20, it is likely that the lower list price and the world’s economic resurgence from the pandemic fueled the flagship’s growth.
Galaxy A series also perform
The flagship isn’t the only positive thing for Samsung, however. While the company doesn’t delve into the details, it also claims that its mid-range devices performed strongly in the first quarter of 2021. Devices in the middle to lower price range are arguably Samsung’s weakness, as the performance of 2020 in Africa shows. However, the company expects the Galaxy A-Series to continue improving its financials in the second quarter of 2021. For the quarter, the company also predicts an acceleration in sales for its wearable and tablet product lines.
However, Samsung warns that the ongoing global chipset shortage and “Weakening of new product effects ” Revenue in the second quarter of 2021 and future flagship sales could fluctuate.
