Shortage? No such thing. Tech big hitters, Huawei, Samsung, and Qualcomm are all powering through the chip shortage to report multi-billion first-quarter profits.
First up, embattled Chinese tech giant Huawei has seen a dramatic drop in first-quarter revenue, with numbers dropping by 14% to $20.6b. Its bottom line has been affected by declining smartphone sales, which have been compounded by the sanctions it faces in the US. The giant will now look to pivot away from being so reliant on the US market and move into smart vehicle systems and enterprise services.
Meanwhile, Samsung reported strong results on Thursday, with profits for the first quarter climbing more than 50% compared to the same time a year ago. The South Korean tech giant pulled in $61.3b in revenue and, $11.1b in operating profit. The results were above market expectations – with Refinitiv forecasting $13.3t over the quarter. The solid earnings are attributed to sales of its memory chips, which were up nearly 40% year-on-year. It also benefited from strong sales of its smartphones.
Qualcomm (QCOM) also reported impressive numbers, with revenue coming in at $11.1b, beating out Wall Street expectations.