Science & Tech

Samsung reports steep rise in profit for the first quarter of 2022

Samsung has reported an enormous rise in working revenue for the primary three months of 2022, thanks partially to the strong demand for its reminiscence chips and the sturdy gross sales of its new Galaxy flagship gadgets. The Korean tech big has posted an working revenue of KRW 14.12 trillion ($11.12 billion), which is 51 p.c increased than the identical interval final 12 months, and a file consolidated income of KRW 77.78 trillion ($61.2 billion). 

As regular, Samsung’s reminiscence division was a standout performer, exceeding market forecasts as a result of reminiscence costs did not drop as a lot as analysts had anticipated. It posted a consolidated income of KRW 26.87 trillion ($21.14 billion), and whereas it noticed a slight decline in revenue attributable to incentives and seasonality, demand for PC and server chips remained stable. The firm’s foundry enterprise additionally contributed to the division’s efficiency by attaining its highest ever first quarter gross sales. Samsung is optimistic for the division’s prospects going ahead, nevertheless it additionally expects part shortages to persist via the second half of the 12 months and can consistently monitor the state of affairs. 

While total demand for cellular was down attributable to seasonality and “geopolitical uncertainties,” Samsung posted increased revenue (KRW 3.82 trillion or $3 billion) and income (KRW 32.37 trillion or $25.5 billion) for the division this quarter in comparison with the final. The sturdy gross sales of its new flagship telephones, significantly the Galaxy S22 Ultra, in addition to of its mass market 5G telephones contributed to each revenue and income progress. Despite the allegations {that a} preinstalled app on S22 telephones is throttling the efficiency of a number of functions, the corporate beforehand mentioned that demand for the flagship is 20 p.c increased than of its predecessor’s. Samsung expects part shortages for cellular to proceed, as properly, nevertheless it additionally expects the supply of part provides for the S22 to enhance. That’s why it plans to concentrate on sustaining sturdy gross sales for its flagships within the subsequent quarter.

The tech big stories an increase in cellular show earnings attributable to stable demand for premium merchandise, as properly. For bigger shows, it says its QD displays have been well-received. It debuted its QD-OLED know-how, which differs from customary OLED in that it solely makes use of blue natural light-emitting diodes for a brighter output, at CES earlier this 12 months. Samsung’s TV enterprise lagged behind its different divisions, although, and noticed a decline in demand following sturdy gross sales ultimately of 2021 and the Russian invasion of Ukraine. In early March, Samsung halted its product shipments to Russia, the place it has a TV plant and the place it is generally known as the highest smartphone model. 

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