Samsung Electronics Co, Asia's largest electronics maker by market value, is seeing better-than-expected demand for handsets, flat screens and some types of semiconductors, an executive said.
First-quarter growth in shipments and profit margins are "much higher than expected" at the beginning of the year, Chu Woo-sik, head of Suwon, South Korea-based Samsung Electronics' investor and public relations, said in an interview yesterday.
Demand for liquid crystal displays (LCDs) and so-called Nand flash memory chips are exceeding company projections, he said.
The performance by Samsung, which earned a record 11 trillion won (US$11 billion) profit last year, contrasts with rivals such as Sony Corp, whose declining profits at its electronics business ultimately led to the replacement of the Japanese company's chief executive.
"So if you put everything into context, business is faring a lot better than initial expectations," Chu said.
Growth in Samsung's first quarter unit shipments for handsets is in the "mid-teens," compared with probable declines by competitors, Chu said.
First-quarter handset average price growth is in the "high-single digits," resulting in higher-than-expected profits, Chu said. He declined to give specific figures.
First-quarter average LCD prices are falling about 5 percent from the end of last year, Chu said. Monitor prices are stabilizing and declines in LCDs used in notebooks and televisions are slowing, he said.
Demand in the first quarter, which was projected to decline, is similar to that of the fourth quarter, Chu said.
Demand for so-called Nand chips, which are used in consumer electronics such as mobile phones and digital cameras, is also better than expected, Chu said. Growth is more than double the company's initial projections for 10 percent growth, he said.
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