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Samsung reports a jump in profits from sales of smartphones and TVs

SEOUL, South Korea (AP) – Samsung Electronics said on Thursday that its profit for the last quarter jumped 46% year-on-year as sales of smartphones and TVs continued to grow as its business continued to thrive.

The South Korean tech giant said its quarterly revenue of 65.39 trillion won ($ 59 billion) was the largest figure for the first three months of the year.

The company’s operating profit of $ 9.38 trillion ($ 8.5 billion) would be greater than for the underperforming semiconductor business, which was hit by a hurricane shutdown at its գործ Austin chip plant in February և falling NAND memory chip prices.

Samsung said it expects its chip business to revive this quarter due to stronger server demands and the resumption of full operations at its Austin plant. However, the company expects to profit from mobile devices during that period due to a lack of supply of some components due to a slowdown in sales of its flagship smartphones.

Samsung said its TV business could benefit from major sporting events such as UEFA Euro 2020, the Tokyo Summer Olympics, but that the continued expansion of COVID 19 created uncertainty.

The company said global demand for its TVs could slow in the second half of the year due to “out-of-home entertainment demand as more countries gain herd immunity” as their populations are vaccinated.

“For the second half, market conditions (expected) to improve for component businesses, և the company continues to expand its product և technology leadership,” Samsung said in a statement. “Nevertheless, global macroeconomic risks, including COVID-19 demand uncertainties, are likely to persist.”

Samsung is going through a serious business year with the dual power of its parts, finished products, which allows it to take advantage of the “long” trade war between the US-China epidemic.

Samsung’s semiconductor business has benefited from an increase in demand for computers and servers as the virus outbreak has forced millions of people to stay home and work. At the same time, US sanctions against Chinese Huawei Technologies have hampered one of Samsung’s biggest competitors in terms of smartphones, components and equipment.

Samsung has shown no apparent concern over the imprisonment of its vice president, de facto CEO Lee E-yong. He is serving a two-and-a-half-year sentence for bribing then-President Park Geun-hye’s close associate between two Samsung subsidiaries in 2015 To gain government support for the merger.

The deal helped strengthen Lee’s control over the Samsung group, but revelations about his corrupt ties to the Park government fueled a 2016 corruption scandal that sparked huge protests and ousted Park’s office.

But some politicians and religious business leaders are urging President Moon Jae-in to pardon Lee. They say it will help Lee consolidate Samsung’s lead in semiconductors, and he may use his business to help the country get more coronavirus vaccines.

On Wednesday, the Lee family announced that they would donate tens of thousands of rare works of art, including Picasso to Dalis, and donate hundreds of millions of dollars to health care, launching a multi-year $ 11 billion inheritance tax plan. Lee’s father և President of the company Lee Kun Hin.

Raising cash to pay taxes could help Lee’s family expand their control over Samsung’s business empire, with some analysts saying the process could lead to group shocks.

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