Samsung posts 12 percent increase in profit but warns of weak mobile and PC demand




 

For the second quarter of 2022, Samsung has reported a consolidated revenue of KRW 77.2 trillion (US$59.4 billion), which is a record high for the quarter ending on June 30th. Samsung's operating profit also reached KRW 14.1 trillion (US$10.8 billion) - that's 12 percent higher from the same period a year earlier and is its best yet since 2018. As has been the case these past years, the company's semiconductor or Device Solutions (DS) division greatly contributed to those numbers and has achieved a historical high in quarterly revenue for the second consecutive quarter.

The DS division posted KRW 28.5 trillion (US$21.9 billion) in consolidated revenue and KRW 9.98 trillion (US$7.7 billion) in operating profit in the second quarter, thanks mostly to server chip demand. However, chip demand for consumer products, such as mobile phones and PCs, was much weaker than expected "due to widening impacts of macro issues." In fact, Samsung said its DRAM and NAND shipments came in below guidance. The company also expects demand for consumer devices to stay weak and even believes that there's a possibility for this slump in demand to make its way to enterprise.

As you can guess based on that information, Samsung's Mobile eXperience (MX) business was also affected by the overall decline in market demand. The company blamed "geopolitical issues and concerns over inflation on top of continued weak seasonality" for the mobile division's decline in earnings. It also said the costs of components and logistics affected the business' profitability and caused it to slide lower than the previous quarter's.

The tech giant doesn't expect smartphone sales to blow up next quarter either: Demand for new phones will likely stay similar year-on-year or show only a single-digital growth, it predicts, because of prolonged geopolitical issues and economic uncertainties. That said, it's hoping that the launch of new foldables could pad its sales numbers in the coming months. Samsung will unveil its next-gen foldable phones at its upcoming Unpacked event on August 10th.

COMMENTS

More Related News

Samsung quarterly profit set to slump 25%, first decline in nearly three years
Samsung quarterly profit set to slump 25%, first decline in nearly three years

Samsung Electronics Co Ltd's third-quarter profit could tumble 25%, the first year-on-year decline in nearly three years, as an economic downturn saps demand...

Apple iPhone may have to switch to USB-C in Europe. What does that mean for your smartphone in the US?
Apple iPhone may have to switch to USB-C in Europe. What does that mean for your smartphone in the US?

European Parliament approved new rules that would require portable devices to have a USB-C charging port. American consumers watch for changes here.

Samsung
Samsung's 256GB Galaxy Z Flip 4 is on sale for $900 right now

Amazon knocks 15 percent off the Samsung Galaxy Z Flip 4, bringing the 256GB version down to $900.

Samsung Woos US Chip Buyers With Tech Advances, Texas Focus
Samsung Woos US Chip Buyers With Tech Advances, Texas Focus

(Bloomberg) -- Samsung Electronics Co. announced an aggressive five-year plan to lure US chip buyers with more advanced technology, aiming to produce...

Samsung Woos US Chip Buyers With Tech Advances, Texas Production
Samsung Woos US Chip Buyers With Tech Advances, Texas Production

(Bloomberg) -- Samsung Electronics Co. announced an aggressive five-year plan to lure US chip buyers with more advanced technology, aiming to produce...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy