Samsung’s Q2 Profit Likely Up 38% Due To Chip Prices

Share post:

Samsung Electronics likely saw a 38% rise in profits for the April-June quarter thanks to strong chip prices and demand from a pandemic-induced consumer appetite for electronics and data center investment, which is now recovering.

The operating profit of the world’s largest memory chip and smartphone manufacturer is expected to have risen to 11.3 trillion won ($10 billion).

Samsung’s strong performance, which is surprising because it shipped fewer smartphones than in the January-March period, illustrates the very high demand for chips that has depleted inventories and filled production capacity.

The result would be a 20% increase over the first quarter and marks Samsung’s highest operating profit for the second quarter since 2018, with revenue expected to have risen 15.4%.

Prices of DRAM chips, which are ubiquitous in servers, mobile phones and other computing devices, jumped 27% compared to the March quarter, while prices of NAND flash chips, which serve the data storage market, rose 8.6%.

They estimated that the chip division’s operating profit in April-June rose about 22% from the same period last year to about 6.6 trillion won.

Still, Samsung’s smartphone sales fell from about 76 million in the first quarter to about 59 million in April-June as sales slowed for its newest flagship model, which hit the market earlier this year.

Lower demand from India, ravaged by the pandemic during the quarter, as well as a tight supply of some mobile processor chips, may also have had an impact on shipments, said analysts, who estimated the mobile business’s operating profit at about 2.9 trillion won.

For more information, read the original story in Reuters.


Related articles

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

 Google executives face employee concerns amid profitsurge

At a recent all-hands meeting, Google employees voiced significant concerns regarding morale, cost-cutting measures, and the impact of...

Spotify CEO confesses to “rough times after layoffs” – stock price rises

In December, Spotify CEO Daniel Ek announced the largest round of layoffs in the company's history, cutting 1,500...

Zuckerberg shares his vision with investors and Meta stock tanks

In an era where instant gratification is often the norm, Meta CEO Mark Zuckerberg’s strategic pivot towards long-term,...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways