Raw materials and semiconductor prices for home appliances, which have been raised since the second half of last year, have increased in the first quarter of this year. This is due to the growing geopolitical uncertainty such as Russia-Ukrainian war, inflation, exchange rate fluctuations, and supply chain risks. The rise in raw materials is expected to continue in the second quarter, and the home appliance industry is planning to improve profitability by selling premium products.

** ■ Raw materials, semiconductor prices, in the second half of last year,

According to Samsung Electronics’ 1Q business report on the 17th, camera module prices, which are major raw materials in the DX division in charge of home appliances and mobile businesses, rose about 8% year -on -year, and mobile application processors (AP) prices rose about 41%.

The price of semiconductor wafer, which is a major raw material for the DS division in the first quarter, rose about 4% year -on -year, and the FPCA (soft printed circuit assembly) price used in Samsung Display’s panel rose about 19%, and the Windows price for tempered glass It was found to have risen by 2%.

LG Electronics also said that raw material prices were raised in the first quarter in the first quarter of business report. ▲ Steel prices, the main raw materials of home appliances, rose 21.9% from last year, and rose 20.4% again in the first quarter of this year. ▲ Resin prices rose 18.2% from last year, 16.3% in 1Q, and copper prices rose 15.1% last year and 36.4% year -on -year in the first quarter.

Samsung and LG Electronics project record sales in Q1
Semiconductor prices for TV and audio and video rose 42.8% year -on -year, the biggest increase. Image sensor prices, which are raw materials for camera modules, have increased by 8% year -on -year.

On the other hand, the price of panel, which was raised last year, fell in the first quarter. LCD TV panel prices rose 47.5% from last year, but fell 15.6% from the previous year. Samsung Electronics announced that the price of display panels for TV and monitors fell by about 42% year -on -year.

In the first quarter, major raw materials and semiconductor prices have eventually affected reduced profitability.

According to Samsung Electronics, the total profit of the first quarter was 30.7 trillion won, down 900 billion won from the previous quarter due to the increase in raw material prices and logistics costs due to macroeconomic issues, and the gross profit margin decreased by 1.8 percentage points to 39.5%. He said he recorded.

LG Electronics’ H & A division’s first -quarter sales reached 7.97 trillion won, an increase of 19%from the previous year, the highest in quarter, but the operating margin was 5.6%, down from the previous year (9.6%). LG Electronics explained, “There were factors such as sales growth and marketing cost reduction, but losses decreased compared to the same period last year due to increased costs such as raw material prices and logistics costs.”

■ 2Q more worries… Breakthrough profitability with a premium product line

In the second quarter, raw material prices are expected to continue due to geopolitical issues, inflation concerns, exchange rate fluctuations, and supply chain risks. Samsung Electronics and LG Electronics are breaking through the sales volume of premium products to improve profitability.

In the first quarter of April, LG Electronics said, “Steel materials and resin are undergoing cost rise due to the increase in oil prices and the increase in basic raw materials.” “The price is expected to become difficult as the price is rising,” he said.

“We are purchasing at a lower price compared to market prices by establishing and recovering partnerships with strategic trade lines for a long time, and we are trying to offset raw material prices by changing materials to cost -saving materials than existing materials.” We will focus on expanding the sale of premium high -efficiency products based on the launch of new products and securing solid profitability with the launch of new products and the increase of active boards. ”

Samsung Electronics also said in the first quarter conference call, “In the second quarter, macroeconomic uncertainties and logistics issues are expected to continue, and mobile in mobile, the raw materials of raw materials due to the Russian or Ukrainian war will lead to inflation, which will affect smartphone consumer sentiment. There is also. ” “The DS division will actively respond to demand, and the DX division will focus on securing profitability by expanding sales of new smartphones and TV products and strengthening premium leadership.”

According to the securities price consensus, Samsung Electronics’ 2Q operating profit is expected to increase by 22% to 15.3 trillion won. In the second quarter, smartphone shipments decreased compared to the previous quarter, while operating profit of the MX division is expected to decrease by 2% to W3tr, down 17% from the previous quarter. VD/home appliance business operating profit is expected to increase by 21% to W830bn, up 4% from the previous quarter.

LG Electronics’ 2Q operating profit is expected to decrease 11% from the previous year (87.7 billion won). The 2Q operating profit of the H & A division is 440 million won, down 20.7% from the previous year, down 10.5% from the previous quarter.

Park Hyung -woo, a researcher at Shinhan Investment Corp., said, “The decline in operating profit in the second quarter is due to the increase in marketing costs due to the increase in raw materials and logistics costs over the past year.” “Increasing costs and falling profitability are inevitable.”