Samsung stories steep rise in revenue for the primary quarter of 2022 | Engadget

Samsung has reported a large rise in working revenue for the primary three months of 2022, thanks partially to the strong demand for its reminiscence chips and the sturdy gross sales of its new Galaxy flagship units. The Korean tech large has posted an working revenue of KRW 14.12 trillion ($11.12 billion), which is 51 % increased than the identical interval final yr, and a report consolidated income of KRW 77.78 trillion ($61.2 billion). 

As common, Samsung’s reminiscence division was a standout performer, exceeding market forecasts as a result of reminiscence costs did not drop as a lot as analysts had anticipated. It posted a consolidated income of KRW 26.87 trillion ($21.14 billion), and whereas it noticed a slight decline in revenue on account of incentives and seasonality, demand for PC and server chips remained strong. The firm’s foundry enterprise additionally contributed to the division’s efficiency by attaining its highest ever first quarter gross sales. Samsung is optimistic for the division’s prospects going ahead, however it additionally expects element shortages to persist by way of the second half of the yr and can continuously monitor the state of affairs. 

While total demand for cellular was down on account of seasonality and “geopolitical uncertainties,” Samsung posted increased revenue (KRW 3.82 trillion or $3 billion) and income (KRW 32.37 trillion or $25.5 billion) for the division this quarter in comparison with the final. The sturdy gross sales of its new flagship telephones, significantly the Galaxy S22 Ultra, in addition to of its mass market 5G telephones contributed to each revenue and income development. Despite the allegations {that a} preinstalled app on S22 telephones is throttling the efficiency of a number of functions, the corporate beforehand stated that demand for the flagship is 20 percent higher than of its predecessor’s. Samsung expects element shortages for cellular to proceed, as nicely, however it additionally expects the provision of element provides for the S22 to enhance. That’s why it plans to give attention to sustaining sturdy gross sales for its flagships within the subsequent quarter.

The tech large stories an increase in cellular show earnings on account of strong demand for premium merchandise, as nicely. For bigger shows, it says its QD screens have been well-received. It debuted its QD-OLED expertise, which differs from commonplace OLED in that it solely makes use of blue natural light-emitting diodes for a brighter output, at CES earlier this yr. Samsung’s TV enterprise lagged behind its different divisions, although, and noticed a decline in demand following sturdy gross sales ultimately of 2021 and the Russian invasion of Ukraine. In early March, Samsung halted its product shipments to Russia, the place it has a TV plant and the place it is often known as the highest smartphone model.