Business

Samsung earnings record fueled by chips, OLEDs, and foldable

In 2020, Samsung weathered the pandemic by posting a record high for revenue in the second from last quarter of 66.96 trillion won. The organization recently uncovered that it set one more record for a similar period in 2021, arriving at 73.98 trillion won, or about $63 billion. While its revenue was up around 10%, Samsung says its benefits developed by 26% from last year to hit 15.82 trillion won ($13 billion).

The second from last quarter of 2021 was a record breaker for Samsung, which posted a revenue of 73.98 trillion Korean won or US$63.1 billion. That is 10% higher from a similar period last year. It likewise revealed a operating profit of 15.82 trillion Korean won or U$13.5 billion, which is 26% higher than the past quarter’s.

In spite of a deficiency of key chips around the world, the memory chips and processors Samsung makes that go into everything from servers to cell phones are in as much demand as ever. Shifts to hybrid work mean have organizations purchasing more SSDs, CPUs, and RAM for servers.

As the world’s biggest chipmaker, excessive costs for memory chips mean high profits for Samsung, regardless of whether increasing costs for raw materials and logistics cut into the benefits of its consumer electronics division. Sales for its memory division specifically were up 46 contrasted with a similar period last year, while benefits for the semiconductor division all in all almost multiplied, going from 5.54 trillion won to 10.06 trillion won (~$8.5 billion) (pdf).

Samsung is additionally the world’s biggest phone maker and says that it saw solid demand for foldable like its Galaxy Z Flip 3 and Galaxy Z Fold 3 and the low-to mid-range Galaxy cell phones it produces.

In spite of reports of conceivable production issues and sliced assembling focuses for Apple’s iPhone 13 lineup, Samsung says its mobile display earnings rose “driven by demand for newly launched products from major smartphone customers.” The most significant client that Samsung gives its mobile OLED displays to is Apple, and that organization will report its quarterly earnings tomorrow.

Investigating the future, Samsung anticipates strong earnings for its mobile displays in Q4, and not due to phones. There’s demand for OLED in bigger gadgets like laptops, tablets, and particularly game consoles like Nintendo’s new Switch OLED, which uses a Samsung-made panel.

It’s additionally because of the high demand for its phones that Samsung’s display business had the option to post 8.86 trillion won or US$7.5 billion in revenue. Display earnings were up from the past quarter essentially because of the higher demand for small to medium OLED panels regardless of a lazy demand for bigger panels.

Samsung stays hopeful for the final quarter, as well as for the next year, however it didn’t give specific guidance for its chip business because of the continuous component supply issue influencing different industries. It anticipates proceeded with high demand for PCs and servers, regardless. For the final quarter explicitly, it’s expecting considerably higher income “due to expanded supply of SoCs and related products for launches of new 5G smartphones in 2022.”

To the extent its TV business, the organization is focused on the high-end, saying that it is on target to begin producing new quantum dot-based sets that will proceed with Samsung’s battle against OLED TVs from LG.

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