Business
Samsung secured highest-ever revenue in Q4 2021, thanks to strong chip sales
On January 27, Samsung Electronics announced the financial results for the fourth quarter and fiscal year 2021. For the quarter ended December 31, 2021, the company posted consolidated revenue of KRW 76.57 trillion, a quarterly record, and an operating profit of KRW 13.87 trillion.
In 2021, it recorded 279.6 trillion won in sales and 51.63 trillion won in operating profit. The revenue growth in the fourth quarter was mainly driven by end product businesses, which expanded sales of premium smartphones, including foldable phones, as well as TVs and home appliances.
The revenues in the memory business have fallen since the last quarter, prices have fallen to a certain level and the company’s guidance has risen slightly.
“Record quarterly revenue of KRW 76.57 trillion, operating profit at KRW 13.87 trillion”
The display panel business continued to improve mobile panel earnings, while losses on larger panels increased due to lower prices on LCDs and costs associated with QD displays.
Mobile Panel Earnings Improved – To Focus on OLED and QD Displays in 2022
And the revenue from the Mobile Experience (MX) business increased slightly due to sales of premium products such as foldable phones and device ecosystem products, while profit declined in the quarter due to rising marketing costs. Network business results improved from the previous quarter as revenue increased for both domestic and global businesses.
The strengthening of the US dollar against the Korean offset weakness in major emerging currencies led to a positive impact of about KRW 300 billion on operating profit compared to the previous quarter.
In the display panel business, mobile displays are expected to deliver better results for the year driven by new smartphone releases and the expansion of the foldable display customer base. On larger panels, the damage is likely to be partially reduced with the massive production of QD displays.
Mobile To Focus on Flagship, Strengthening Mass Market 5G Lineup
With the release of new flagship models and mass sales of mass-market 5G smartphones as well as tablets and wearables, MX Business is expected to be able to generate revenue and profit growth despite supply restrictions. For network business, the company aims to gain new opportunities from European and other global customers.
Visual Display and Digital Appliances To Continue Focus on Premium and Lifestyle Products
For the display panel business, demand for OLED is expected to increase with the high and foldable market growth of 5G. For larger panels, the company will work to secure technical leadership with QD displays in the premium segment but will design the LCD production line as planned.
The total capital expenditure of the company in 2021 will be KRW 48.2 trillion, including KRW 43.6 trillion for semiconductors and KRW 2.6 trillion for displays. Foundry costs focus on capacity expansion of 5-nanometer EUV nodes. For demonstrations, investments are focused on mobile modules and QD displays.
For a closer look at Samsung’s financial results for the fourth quarter and the fiscal year 2021, you can visit Samsung official.
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Samsung remained the king in the Q2 2024 market, but Apple and Xiaomi are getting closer. IDC market research data shows that Samsung led the worldwide smartphone market in the second quarter of the year and Chinese brands scored rapid growth.
According to IDC, Samsung sold 53.9 million devices in the second quarter. The company occupied an 18.9% market share internationally. The company has slightly improved its sales share up from 53.5 million units in the same period last year.
The data suggests that Apple ranked second in terms of global volume sales. The iPhone maker shipped 45.2 million devices in Q2, 2024. It captured a market share of 15.8%, a modest increase from 44.5 million shipments in the second quarter of last year.
Third comes Xiaomi. The Chinese brand saw massive growth in sales year over year. It had sold 42.3 million smartphones in the second quarter alone. It’s a big jump from 33.2 million units shipped in Q2 2023, becoming a potential threat to Apple and Samsung.
Apart from this, Vivo also recorded significant growth in the global market. The company’s year-over-year growth in Q2 was 21.9%, with sales listing 25.9 million units with a market share of 9.1%. The growth percentage shows that aggressive marketing and boasting competitive specs into devices is paying off.
Samsung, Apple’s game isn’t over…
Last week, Samsung launched its new foldable phones, releasing on July 24, 2024. Apple, on the other hand, is expected to launch new flagship iPhones in September. It means, Samsung will enjoy the third quarter as well. The fourth quarter might be of Apple as iPhone sales would sharply grow in the global market given the new lineup release.
Samsung is now preparing to unveil new FE products later this year, followed by the S25 series in early next year. Chinese brands are expected to debut their latest flagships in the last quarter of this year, while Google Pixel phones are also coming in August.
Samsung today announced provisional sales and profit results for the second quarter. Samsung formally announced the provisional/predicted sales and operating profit, suggesting a massive profit boom in Q2, 2024 given the AI memory semiconductor rise.
In Q2, 2024, Samsung sales provisionally increased by 2.89% and operating profit by 57.34% compared to the previous quarter thanks to AI boom. Besides, the sales climbed by 23.31% and operating profit by 1,452.24% compared to the same period last year.
The company expects sales of 74 trillion won and operating profit of 10.4 trillion won on a consolidated basis. While these results are not final, there won’t be much change in the final result when it comes out. Samsung had a pretty profitable period in the second quarter.
Samsung in Q2
- Consolidated Sales: Approximately 74 trillion Korean won
- Consolidated Operating Profit: Approximately 10.4 trillion Korean won
The Korean tech giant is currently facing yield issues in its second-generation 3nm process. The flagship Exynos processor is unlikely to be commercialized this year. It would lead the Mobile business to face additional burdens due to rising prices of Snapdragon chipsets.
Meanwhile, Samsung is focussing on HBM (high bandwidth memory) semiconductors. HBM is a key player in artificial intelligence servers and data centers. The booming AI market will directly benefit Samsung’s semiconductor business.
Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
// Source