Seoul: South Korean tech giant Samsung Electronics It said on Thursday that its operating profit rose 53.3 percent in the fourth quarter of 2021, as record sales helped it overcome supply chain challenges induced by the pandemic.
The world’s largest smartphone maker said its operating profit rose to ₹13.87 trillion ($11.55 billion) in 2021 for the October-December period, up from nine trillion in the same quarter last year.
Thanks to high memory chip prices and strong consumer demand, samsung The company said in a regulatory filing that it had its highest annual sales of ₹279.6 trillion in 2021, up 18 percent from a year earlier.
Samsung achieved record sales “despite continued uncertainty, thanks to competing products,” the tech giant said in a statement, touting solid demand for its premium smartphone lines.
While the COVID-19 pandemic has wreaked havoc on the global economy, it has helped many tech companies boom.
The work-from-home pandemic has stoked demand for appliances powered by Samsung’s chips, as well as household appliances such as televisions and washing machines.
The world’s largest memory chip maker, Samsung Electronics, has aggressively increased investments in its semiconductor business as the world grapples with chip shortages that have affected everything from cars and home appliances to smartphones and gaming consoles.
Analysts have said the global chip supply crunch is expected to continue well into the new year.
“Demand in the memory business is expected to increase as enterprise IT investments increase, while the company expands the supply of high-performance products,” Samsung said.
In November, Samsung announced a new microchip factory in Texas with an investment of $17 billion. The plant is expected to be commissioned by the end of 2024.
Samsung is also investing in the development of advanced technologies such as artificial intelligence and robotics, as well as the development of 5G and 6G communications.
Park Sung-soon, an analyst at Cape Investment and Securities, said a drop in memory chip prices is likely in the first half of 2022.
“Samsung profits are likely to decline in the January-June period. But we also expect a change in chip prices in the second half, which will boost the company’s profitability.
“We projected chip prices to drop by about 10 percent in the first months of 2022, but it now appears that the decline will be smaller with solid PC demand and improved supply chains.”
Consumer demand for high-end products like foldable phones also helped boost profits further during the holiday season.
Samsung said it expects the smartphone and premium television market to grow in the third year of the pandemic, although it anticipated that “uncertainties have arisen”. COVID-19 and supply and logistics issues”.
Operating profit generated from Samsung’s semiconductor business accounted for over 63.7 percent of the Q4 total, which plays a major role in this huge conglomerate.
Samsung’s operating profit from the semiconductor division was 8.8 trillion won for the October-December period.
Samsung Electronics is a major subsidiary of the giant Samsung Group, by far the largest of the family-controlled empires known as Chaebol, which dominated business in South Korea.
The group’s total turnover accounts for about a fifth of South Korea’s GDP.
This is how Samsung Electronics’ record sales came last year Lee Jae-yong, the firm’s vice president and de facto leader of the broader Samsung Group, returned to management when he was released from prison on parole last August.
Lee had spent half of his two-and-a-half-year sentence for bribery, embezzlement and other offenses in connection with the corruption scandal that brought down the ex-South Korean president. Park Geun-hye before his release.
His return to management has eased decision-making concerns at Samsung.
The world’s largest smartphone maker said its operating profit rose to ₹13.87 trillion ($11.55 billion) in 2021 for the October-December period, up from nine trillion in the same quarter last year.
Thanks to high memory chip prices and strong consumer demand, samsung The company said in a regulatory filing that it had its highest annual sales of ₹279.6 trillion in 2021, up 18 percent from a year earlier.
Samsung achieved record sales “despite continued uncertainty, thanks to competing products,” the tech giant said in a statement, touting solid demand for its premium smartphone lines.
While the COVID-19 pandemic has wreaked havoc on the global economy, it has helped many tech companies boom.
The work-from-home pandemic has stoked demand for appliances powered by Samsung’s chips, as well as household appliances such as televisions and washing machines.
The world’s largest memory chip maker, Samsung Electronics, has aggressively increased investments in its semiconductor business as the world grapples with chip shortages that have affected everything from cars and home appliances to smartphones and gaming consoles.
Analysts have said the global chip supply crunch is expected to continue well into the new year.
“Demand in the memory business is expected to increase as enterprise IT investments increase, while the company expands the supply of high-performance products,” Samsung said.
In November, Samsung announced a new microchip factory in Texas with an investment of $17 billion. The plant is expected to be commissioned by the end of 2024.
Samsung is also investing in the development of advanced technologies such as artificial intelligence and robotics, as well as the development of 5G and 6G communications.
Park Sung-soon, an analyst at Cape Investment and Securities, said a drop in memory chip prices is likely in the first half of 2022.
“Samsung profits are likely to decline in the January-June period. But we also expect a change in chip prices in the second half, which will boost the company’s profitability.
“We projected chip prices to drop by about 10 percent in the first months of 2022, but it now appears that the decline will be smaller with solid PC demand and improved supply chains.”
Consumer demand for high-end products like foldable phones also helped boost profits further during the holiday season.
Samsung said it expects the smartphone and premium television market to grow in the third year of the pandemic, although it anticipated that “uncertainties have arisen”. COVID-19 and supply and logistics issues”.
Operating profit generated from Samsung’s semiconductor business accounted for over 63.7 percent of the Q4 total, which plays a major role in this huge conglomerate.
Samsung’s operating profit from the semiconductor division was 8.8 trillion won for the October-December period.
Samsung Electronics is a major subsidiary of the giant Samsung Group, by far the largest of the family-controlled empires known as Chaebol, which dominated business in South Korea.
The group’s total turnover accounts for about a fifth of South Korea’s GDP.
This is how Samsung Electronics’ record sales came last year Lee Jae-yong, the firm’s vice president and de facto leader of the broader Samsung Group, returned to management when he was released from prison on parole last August.
Lee had spent half of his two-and-a-half-year sentence for bribery, embezzlement and other offenses in connection with the corruption scandal that brought down the ex-South Korean president. Park Geun-hye before his release.
His return to management has eased decision-making concerns at Samsung.
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