Samsung, the world’s largest electronics maker, posted its best second-quarter profit since 2018 thanks to strong sales of memory chips to server customers.
Samsung posted an operating profit of 14 trillion won (US$10.7 billion), an increase of 11% from 12.57 trillion won (US$9.7 billion) a year earlier. Revenue in the second quarter rose 21% to 77 trillion won (US$59.2 billion) in line with market estimates.
Samsung enjoyed huge demand for its chips and analysts said the company benefited from a strong dollar outlook.
“Memory chipmakers are expected to build inventory this year, keeping supply conservative, and hike shipments when prices rebound and demand recovers next year,” said Park Sung-soon, an analyst at Cape Investment & Securities.
Despite a strong second-quarter profit, Samsung could face a bleak third quarter overshadowed by several problems, including rising inflation, the ongoing war in Ukraine and China’s COVID-19 lockdown. Although these problems have only affected smartphone sales, a recent drop in chip demand could also contribute to lower revenues for the company.
The sources for this piece include an article in Reuters.