Samsung Electronics has recorded its strongest first quarter profits since 2018 due to strong mobile sales led by its flagship Galaxy S21 line.
The Korean tech giant’s net profits hiked to 46.3% compared to the same quarter in 2020 to 7.1trn won ($6.4bn ; £4.6bn).
Sales of television and home appliances also recorded strong growth, owing to continued stay-at-home demand.
But, the company’s profits were dented by disappointing results for its chips business.
“Solid sales of smartphones and consumer electronics outweighed lower earnings from semiconductors and displays,” the company said in an earnings report.
Its main competitor for premium phones Apple also recorded bumper results on Tuesday, with iPhone sales in China contributing to double the company’s profits since the start of the pandemic.
Both companies performed well during the pandemic, as many customers chose to upgrade their phones, laptops and other devices to work from home.
Despite high demand due to a global shortage, Samsung’s chips business was hard hit by the cost of ramping up production domestically and a storm-related stoppage at its Texas factory in February.
As the factory has resumed full production, the world’s largest chipmaker is expecting stronger results for its semiconductor business in the second quarter.
However, the electronics giant warned that this could be challenged by a decline in flagship smartphone sales and continuing supply issues with some components.
The figures came a day following the family of Samsung’s late chairman Lee Kun-hee announced plans to pay more than 12trn won ($10.78bn) in inheritance taxes on his estate.
The tax issue has been closely monitored, as it could impact the Lee family’s stake in Samsung.
But, the announcement provided little clarity as to whether or not the Lee family would sell any shares to pay the tax.
