Samsung expects higher sales, probably due to higher prices components

Samsung expects it has made more sales and profits in the first months of 2018 than in the same period last year. The group does not mention any causes, but analysts think it is due to higher prices of nand and dram.

Samsung says in its preview of the quarterly figures that it expects a turnover increase of around 18 percent, while the operational profit would be even 57 percent higher. Samsung benefited last year from the increased prices of dram and nand, parts that other manufacturers need a lot.

Analysts expect that the peak in prices of nand and dram has been reached and that the turnover of Samsung’s hardware branch will fall in the coming quarters. , reports Reuters . With a falling price the demand for these components will rise again, as a result of which the fall in sales and price decrease will not be the same.

In addition, analysts estimate that Samsung has supplied many older models of smartphones. The group released its Galaxy S9 smartphone in March. A new Galaxy S model is always a spike in deliveries, but according to analysts who have spoken to Reuters, consumers are scared of high prices for new models and therefore often opt for cheaper options, including smartphones from a previous generation.

Samsung only publishes a few figures as a preview of the quarterly report and says nothing about the turnover and profit per business unit. This only happens with the publication of the full quarterly results at the end of April.


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