Samsung reported solid second-quarter earnings on the back of strong performance in its chip division, offsetting relatively weaker performance from its consumer products division.
On Thursday, the South Korean tech giant said it posted 77.2 trillion won in sales and 14.1 trillion won in operating profit for the quarter. The revenue figure was Samsung’s highest to date for the second quarter while operating profit rose 12% from a year ago.
The Device Solutions division, as the company’s chip division is called, contributed 9.98 trillion won in operating profit, more than two-thirds of total quarterly operating profit. Samsung says the company benefits from favorable exchange rates and demand for memory chips from the server sector remains solid.
While demand for memory chips from consumer products has weakened, the company has maintained its chip selling prices through a “disciplined sales strategy,” the tech giant said.
Samsung says demand for memory chips from the server sector is expected to remain stable for the rest of the year while demand from PC and mobile will be weak, despite year-end sales events. can promote this.
In addition, for foundry or contract chip manufacturing, the company said it posted the highest revenue in the second quarter thanks to improvements in productivity, noting that it became the first in the this field began mass production of 3 nanometer chips.
Samsung’s mobile business was the second largest contributor to quarterly operating profit with 2.62 trillion won. Operating profit of the business decreased slightly compared to a year ago but revenue increased thanks to strong sales revenue Galaxy S22 and the Galaxy Tab S8, the company notes.
Samsung said geopolitical issues and inflation concerns persisted this quarter but supply disruptions in the first quarter have been largely resolved.
While economic uncertainties are expected to continue for the rest of the year, the company said it will expand its flagship sales by “successfully launching” new foldable models by providing a better customer experience. Samsung will also focus on delivering richer, multi-device experiences based on its SmartThings platform, Samsung added.
Meanwhile, Samsung Display, a subsidiary that manufactures display panels, was the third largest contributor to total quarterly profit with 1.06 trillion won.
Despite slowing smartphone demand, this business unit improved profitability thanks to strong customer flagship smartphone sales and growing use of OLED panels from the device. laptops and gaming devices.
However, Samsung’s TV business recorded its lowest quarterly operating profit in three years at 360 billion won, as demand fell from last year’s high due to pent-up demand from the pandemic. . Macro risks are expected to continue in the sector for the rest of the year, the company said.
