Samsung reports Q2 profit despite component shortage

Going further, Samsung aims to solidify its leadership in the premium phone segment by mainstreaming the foldable category

Samsung logo on a Galaxy smartphone

Despite its mobile sector taking a fall due largely to component shortages, Samsung reported a 20% increase in sales and a 54% increase in operating profit year over year in its second-quarter earnings. The firm had an operating profit of 12.57 trillion Korean Won (KRW) ($13.63 billion CAD) from revenue of 63.67 trillion KRW ($69 billion CAD).

Samsung’s semiconductor division was the major winner. “Strong demand for server and PC memory, as well as stronger-than-expected increases in average sales prices for both DRAM and NAND chips,” was the driving factor, reads the report. The semiconductor industry generated more than a third of its revenue and more than half of its profits during the quarter.

According to Samsung, smartphone sales were hampered by a worldwide component shortage, COVID-19, and the usual poor seasonality. Considering all the shortcomings, the division was still extremely successful, with an operating profit of 6.93 trillion KRW ($7.5 billion CAD) on 22.74 trillion KRW ($24.64 billion CAD) in revenue. “Looking ahead to the second half, mobile market is forecast to recover to the pre-COVID level on an annual basis as 5G adoption and contactless trend continue to thrive,” reads Samsung’s second-quarter earnings report.

Further, Samsung’s next Unpacked event is scheduled for August 11th, where the company is expected to launch the l0ng-awaited Galaxy Z Fold 3 and Galaxy Z Flip 3. Samsung aims to “solidify its leadership in the premium segment by mainstreaming the foldable category while continuing the sales momentum of Galaxy S series throughout the year.”

Follow the links for Samsung’s full earnings report and what to expect from the Galaxy Unpacked event.

Source: Samsung