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Samsung posts record Q2 revenue at $55.5bn; up 20%

SEOUL, July 29, 2021

Samsung Electronics has posted a total consolidated revenue of KRW63.67 trillion ($55.56 billion), a 20% increase from the previous year and a record for the second quarter.

Operating profit increased 34% from the previous quarter to KRW12.57 trillion as market conditions improved in the memory market, operations normalized at the Austin foundry fab, and as effective global supply chain management (SCM) helped maintain solid profitability for the finished product businesses.

The Semiconductor business saw a significant improvement in earnings as memory shipments exceeded previous guidance and price increases were higher than expected, while the Company strengthened its cost competitiveness. For the Display Panel Business, a one-off gain and an increase in overall prices boosted profits.

Earnings at the Mobile Communications Business declined from the previous quarter due to component supply shortages and Covid-19 related production disruptions. But the business posted solid profitability as the Company leveraged its global SCM capabilities, improved the cost structure and as contributions from tablets and wearables continued.

The consumer electronics division posted strong results driven by increased sales of premium products as demand remained strong.

For the second half, market conditions are expected to be favourable for the component business and the company will focus on enhancing product and technology leadership. In smartphones and consumer electronics, the company aims to maintain solid profitability by strengthening the premium category leadership.

However, risks of continued disruptions in component supply and uncertainties related to Covid-19 are likely to persist, a company statement said.

The Mobile Communications Business plans to achieve solid revenue and profit by boosting the competitiveness of the product lineup with the launch of new foldable models and the expansion of mass market 5G phones. The company will also continue to increase sales of the Galaxy Ecosystem products. The Networks Business will drive revenue growth in key markets, including North America, and continue to explore new opportunities in Europe and other regions.

The consumer electronics division will solidify leadership in the premium TV market and increase digital appliances revenue by bolstering global sales of the Bespoke product line.

Samsung expects demand to recover for mobile displays as major customers are planning to launch new flagship models, including high-value products such as foldable phones. However, there are concerns that a supply crunch of certain components such as DDIs may affect shipments for some customers.

Meanwhile, the company forecasts the sales of IT devices and portable gaming products featuring OLED screens to grow in earnest.
 
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. However, uncertainties over component supply and Covid-19 will continue to persist.

The company will strive to achieve solid revenue and profits by enhancing the competitiveness of its smartphone lineup with the launch of new foldable models and expansion of mass-market 5G models. Also, it will further increase sales of the Galaxy Ecosystem products.

With successful launch of the new foldable smartphones with further enhanced user experience, the company will solidify its leadership in the premium segment by mainstreaming the foldable category while continuing the sales momentum of Galaxy S series throughout the year, the statement said. – TradeArabia News Service




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