Business
Samsung sees 20% annual net profit increase in Q2 2021 with total revenue of KRW 63.67 trillion
Recently, Samsung Electronics announced the financial results for the second quarter ending June 30, 2021. The total aggregate revenue was KRW 63.67 trillion, a 20% increase from the previous year and a record for the second quarter.
According to the report, in the second quarter, while reducing smartphone sales due to low season and inadequate supply of components, the company actively responded to server-based memory demand and recorded the highest second-quarter sales as sales of premium household items were also large.
Operating gains recorded 12.57 trillion won as the memory market improved and the Austin base was normal, while display performance improved due to rising sales prices and a single profit.
Join Sammy Fans on Telegram
The established business also retains strong profits through the effective use of SCM (supply chain management) capabilities, or under difficult circumstances such as stock shortages. The effective profit margin was 19.7%, which improved significantly from the previous quarter and the same period last year.
The company’s capital expenditure in the second quarter reached KRW 13.6 trillion, including KRW 12.5 trillion spent on semiconductors and KRW 0.6 trillion on demonstration. The total amount spent in the first half was KRW 23.3 trillion, including KRW 20.9 trillion semiconductors and KRW 1.4 trillion for display.
Samsung Q2 2021 Business Results
Samsung Mobile Profitability Remains Solid in Q2
The IT & Mobile Communications Division contributed KRW 22.67 trillion in aggregate revenue and KRW 3.24 trillion operating revenue in the second quarter.
With the successful launch of new folding smartphones with a more advanced user experience, the company will strengthen its leadership in the premium category by introducing a foldable model while continuing the momentum of the Galaxy S series sales throughout the year.
Samsung Semiconductor Earnings Rise
The semiconductor business invested KRW 22.74 trillion in aggregate revenue and KRW 6.93 trillion operating revenue in the second quarter.
The Memory Business reported a significant increase in revenue from the previous quarter, led by strong demand for server and PC memory, as well as a stronger than expected increase in average retail prices for both DRAM and NAND chips.
Samsung Display Earnings
The Display Panel Business sent KRW 6.87 trillion in total revenue and KRW 1.28 trillion operating revenue in the second quarter. Its acquisition has improved since the last quarter although the season is weak for portable products, mainly due to the one-time profit and the increase in the overall ASP.
Samsung Strong Earnings For Both TV and Equipment
The Consumer Electronics Division, which owns Visual Display and Digital Appliances, recorded KRW 13.4 trillion in total revenue and KRW 1.06 trillion operating revenue in the second quarter.
The company will carefully monitor the rapidly changing market conditions and respond promptly to the changes required by its high-power SCM. Expanded sales of premium products with regional seasonal promotions, improved online and offline purchases, and improved performance is part of the profit system.
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.
Follow our socials → Google News | Telegram | X/Twitter | Facebook | WhatsApp
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