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.