SPY424.31+0.70 0.17%
DIA345.12+0.14 0.04%
IXIC14,069.42+49.09 0.35%

Samsung Predicts Pandemic Induced Digital Appliance Business Boom Till 2021 End: Reuters

05/11/2021 16:08
  • Samsung Electronics Co Ltd’s (OTC: SSNLF) digital appliances business President, Lee Jae-seung, expects the pandemic-induced home appliance sales boom to extend till the second half of 2021 against the previous expectation of the first quarter, Reuters reports.
  • The travel restrictions, despite vaccine rollouts, government economic stimulus measures, and limited consumer spending avenues for consumers have driven the forecast.
  • Samsung had enough chips for the appliance business despite the global supply crunch.
  • Samsung swapped from 8-inch chips to 12-inch, undertook software workarounds, and diversified chip sourcing firms to Japan, Taiwan, and China to counter the global chip crisis.
  • Samsung posted a 144% growth in North American vacuum cleaner sales, a 79% growth in European dishwasher sales, and a 12-times growth in Brazilian robot vacuum sales in Q1.
  • It was also globally expanding its ‘Bespoke’ brand customized appliances.
  • Higher personalization drove Samsung’s subcontractor outsourcing. It also triggered an appliances production growth of 30%-50% without extensive investment.
  • Samsung was also adding new lines in most factories, including Mexico, the U.S., and South Korea, to meet the demand surge.
  • Samsung will offer personalized, connected refrigerators, kitchen appliances, air purifiers, and vacuum cleaners, and closets that produce steam to clean clothes, shoes and kill bacteria in the North American, European, and Korean markets this year.
  • Samsung’s home appliance operating profit rose over two-fold year-on-year to $357.71 million (400 billion won) in the March quarter, Eugene Investment & Securities stated.
  • Price action: SSNLF shares closed at $44.20 on Tuesday.