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

For the second quarter of 2022, Samsung reported consolidated sales of KRW 77.2 trillion (US$59.4 billion), which is a record high for the quarter ended June 30. Samsung’s operating profit also reached KRW 14.1 trillion (US$10.8 billion), up 12 percent from the same period last year and the best since 2018. As in previous years, the company’s semiconductor or device solutions have grown Company (DS ) was a major contributor to these numbers, posting an all-time high in quarterly revenue for the second consecutive quarter.

The DS division posted consolidated sales of KRW 28.5 trillion (US$21.9 billion) and operating profit of KRW 9.98 trillion (US$7.7 billion) in the second quarter, mainly driven by demand for server chips. However, demand for chips for consumer products such as cellphones and PCs was much weaker than expected “due to the increasing impact of macroeconomic problems.” In fact, Samsung said its DRAM and NAND shipments were below expectations. The company also expects demand for consumer devices to remain weak, and even believes it’s possible for this demand slump to spill over to businesses.

As you can guess from this information, Samsung’s Mobile eXperience (MX) business has also been affected by the overall drop in market demand. The company blamed “geopolitical issues and inflation concerns on top of ongoing weak seasonality” for the wireless division’s earnings decline. It also said that component and logistics costs hurt the company’s profitability and caused it to fall below the previous quarter.

The tech giant also doesn’t expect smartphone sales to explode in the next quarter: Demand for new phones is likely to remain similar year-over-year or show just a single digital growth, it predicts amid ongoing geopolitical issues and economic uncertainty. However, it is hoped that the launch of new foldable devices could boost sales in the coming months. Samsung will unveil its next-gen foldable phones at its upcoming Unpacked event on August 10th.

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https://www.engadget.com/samsung-increase-in-profit-weak-mobile-pc-demand-065209058.html?src=rss Samsung posts 12 percent increase in profit but warns of weak mobile and PC demand

Russell Falcon

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