Samsung has reported a large rise in working revenue for the primary three months of 2022, thanks partially to the sturdy demand for its reminiscence chips and the sturdy gross sales of its new Galaxy flagship gadgets. The Korean tech large has posted an working revenue of KRW 14.12 trillion ($11.12 billion), which is 51 p.c greater than the identical interval final yr, and a report consolidated income of KRW 77.78 trillion ($61.2 billion).
As common, 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 strong. The firm’s foundry enterprise additionally contributed to the division’s efficiency by reaching its highest ever first quarter gross sales. Samsung is optimistic for the division’s prospects going ahead, however it additionally expects part shortages to persist by the second half of the yr and can continuously monitor the scenario.
While general demand for cellular was down attributable to seasonality and “geopolitical uncertainties,” Samsung posted greater 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, notably 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 stated that demand for the flagship is 20 p.c greater than of its predecessor’s. Samsung expects part shortages for cellular to proceed, as properly, however it additionally expects the provision 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 large stories an increase in cellular show earnings attributable to strong demand for premium merchandise, as properly. For bigger shows, it says its QD screens 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 yr. 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.