Samsung Electronics Co Ltd (ADR) (LSE:BC94) is expected to report its best first-quarter earnings in four years due to strong mobile and chip sales, according to media reports.
In its earnings guidance, the company predicted operating profit for the first three months of the year will be 14.1trn Korean won (US$11.5bn), up 50.3% over last year's level.
Due to "diversified sources of materials" and ample inventories of key materials like neon, Samsung said the war in Ukraine did not impact its chip production immediately.
Samsung's top and bottom lines are heavily dependent on memory chips.
A gloomy global economic outlook, high inflation, and Russia's invasion of Ukraine have had no effect on chip prices in the first three months of 2022.
If the preliminary result stands, it would mark the tech giant's record first-quarter sales and the third consecutive quarter in which it logged 70 trillion won in quarterly sales.
One of the world's largest memory chip and smartphone makers did not break down performance by business division. It will release detailed earnings later this month.
The tech company's profits also appear to be boosted by its smartphones and high-end home appliance businesses.
The Galaxy S22, Samsung's latest flagship smartphone, was launched in late February.
The company expects the series will soon exceed 1mln sales in South Korea, which is two weeks faster than the Galaxy S21 series, and 47 days faster than the mega-hit Galaxy S10 did in 2019.
Global pre-orders for the Galaxy S21 series were more than double.