Tech

Samsung Electronics Q4 operating profit rises 26% on chip, display panel sales

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Key Points
  • Samsung said its fourth-quarter operating profit rose 26%, driven by sales of memory chips and display panels.
  • That was in line with the tech giant's guidance this month.
  • Samsung also said revenue rose 3% to 61.6 trillion won, also meeting estimates.
A woman walks past the logo of Samsung Electronics at the company's Seocho building in Seoul on January 30, 2020.
Jung Yeon-je | AFP via Getty Images

Samsung Electronics said on Thursday it expects its overall profit to weaken in the first quarter of 2021, hurt by unfavorable currency movements at its memory chip business and the cost of new production lines.

The forecast comes despite expected solid demand for its mobile products and in its data centers business.

Samsung posted a 26% rise in operating profit in the October-December quarter on the back of strong memory chip shipments and display profits, despite the impact of a strong won, the cost of a new chip production line, weaker memory chip prices, and a quarter-on-quarter drop in smartphone shipments.

Samsung's operating profit in the fourth quarter rose to 9.05 trillion won ($8.17 billion), from 7.2 trillion won a year earlier, in line with the company's estimate earlier this month.

Revenue at the world's top maker of memory chips and smartphones rose 3% to 61.6 trillion won. Net profit rose 26% to 6.6 trillion won.