Samsung Electronics second-quarter profits grew
8 July 2022
Samsung Electronics said in a statement on Thursday that it anticipates operational profits in the second quarter of 2022 to increase by 11.4 percent, despite persistent supply chain issues throughout the world.
The largest smartphone manufacturer in the world expects to make such gains of almost 14 trillion won ($10.7 billion) from April to June, up from 12.6 trillion won in the same quarter last year.
Samsung anticipates that sales will have climbed by 21% year over year to 77 trillion won during the three-month period. The amount would be lower than its sales of 77.8 trillion won in the first quarter.
Analysts claimed that Samsung’s ongoing success in the memory chip market, which compensated for a fall in smartphone sales during the time period, boosted the company.
According to Park Sung-soon, an analyst at Cape Investment & Securities, “Samsung’s smartphone shipments for the second quarter are likely to be just over 60 million units, which is poorer than expected.”
According to global research firm Counterpoint, Samsung shipped 74.5 million smartphones between January and March, dominating the market with a 23 percent share and coming in second behind Apple’s 18 percent.
The industry has become less reliant on seasonally driven demand for electronics like smartphones and laptops because memory chips are now employed in a variety of devices and cloud servers, which are necessary for remote working in the era of the coronavirus epidemic.
But due to Russia’s protracted conflict with Ukraine and escalating worries of a recession brought on by inflationary pressure, concerns are developing about the unpredictability of the global economic picture.
According to Park, it will be difficult for consumer demand for IT (information technology) gadgets to increase in the upcoming months under these conditions.
The flagship company of the family-run conglomerates, or chaebols, that rule business in the nation of East Asia, the Samsung Group, is Samsung Electronics.
The total revenue of the conglomerate is about equal to one fifth of South Korea’s GDP.
As the globe struggles with chip shortages that have affected everything from vehicles and home appliances to smartphones and gaming consoles, Samsung Electronics, the largest memory chip manufacturer in the world, has aggressively increased investment in its semiconductor sector.
In an effort to catch up to and eventually surpass Taiwan’s TSMC in the race to build the most advanced microchips, the business this week became the first chipmaker in the world to mass-produce advanced 3-nanometer devices.
Before being utilized in mobile phones and other gadgets, the new chips will be used in high-performance computing applications. They will also be smaller, more powerful, and efficient.
