Samsung’s quarterly performance is convincing, even if the South Korean firm is mainly driven by its semiconductor branch. On the smartphone side, it obviously sees life folding…
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In the second quarter, Samsung Electronics had sales of $55.6 billion (+20% year-on-year), on which the company made $11 billion in net profit (+54%). These are very good results (like those recorded by other giants in the sector such as Apple or Google), despite the impact that the shortage of components and computer chips has had on its business.
Semiconductors, Samsung’s cash cow
The company explained that its Vietnamese factories had experienced periods of interruption due to shortages in the supply of certain parts. The mobile division of Samsung also notes that the pandemic has disrupted the usual seasonality of the market, resulting in sales that have declined compared to the previous quarter, while increasing over a year. The image branch is doing very well, thanks in particular to the launch of Neo QLed televisions.
But as always with the South Korean manufacturer, it is the semiconductor business that generates the most revenue, accounting for more than a third of the chaebol’s overall sales. It is also the most profitable, accounting for more than half of all profits. In the memory market, for example, Samsung has been able to take advantage of much higher demand and prices than anticipated.
Folding smartphones for everyone
In the future, Samsung hopes to “strengthen its leadership in the premium smartphone segment”. A goal that the brand intends to achieve in particular by “making folding phones available to as many people as possible”. The appointment is therefore made for August 11, when its next event will be held during which could be announced the Galaxy Z Fold and Z Flip. As well as a smartphone exploiting a new technology allowing to use a photo/video sensor hidden under the screen.