Business
Samsung net profit rose 10% in Q3 2021, thanks to strong chip sales
On October 28, Samsung released its financial results for the third quarter ending September 30, 2021. The total aggregated revenue was a quarterly record of KRW 73.98 trillion, an increase of 10% over the previous year, which was the highest level previously.
And the operating profit increased by 26% from the previous quarter to KRW 15.82 trillion, the second-largest ever, as favorable market conditions continue in the memory market while established and display businesses are gaining strong sales.
The Memory Business has seen significant improvements in revenue received through quarterly record submissions, as well as DRAM’s second-highest earnings, and Foundry Business’s results have improved due to strong sales to global customers. In the Display Panel business, revenue is rising as major smartphone customers introduce new products.
The Mobile Communications Business has seen a steady increase in revenue due to the strong demand for new foldable devices and mid-range smartphones as well as growth from tablets and wearables. Networks Business has expanded its global business, including in North America and Japan, and has continued to expand its integration of 5G network into the domestic market.
The Consumer Electronics Division saw the strong expansion of the premium TV and Bespoke product list, but profits declined due to rising consumer and planning costs.
The strength of most currencies compared to Korean won, and the US dollar, in particular, had a positive impact of about KRW 800 billion on operating profit compared to the previous quarter.
In the fourth quarter, the Company will focus on meeting the memory needs and products of the semiconductor system as part-time shortages in some customers may affect demand. The company will also maintain a strong profit margin of finished products by strengthening our leadership and programs in the paid sector.
In the Display Panel business, part of the mobile panels is expected to achieve strong results with the continued demand for smartphones and the growing sales of new apps. The company is in the early stages of producing quantum-dot (QD) indicators as planned.
By 2022, amid anticipation of a sustained global IT demand, the Company’s business segment will focus on expanding advanced processes and improving product and technology leadership.
The Company’s major expenditure in the third quarter amounted to KRW 10.2 trillion, which included KRW 9.1 trillion spent on semiconductors and KRW 0.7 trillion in exhibitions. The largest expenditure to date in 2021 was KRW 33.5 trillion, which includes KRW 30 trillion semiconductors and KRW 2.1 trillion for display.
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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