Samsung’s numbers skyrocket despite smartphone division failure

Samsung’s numbers skyrocket despite smartphone division failure

According to Reuters, citing a Refinitiv SmartEstimate report compiled by 20 analysts, the operating profit of the world’s largest manufacturer of memory chips and smartphones, Samsung, jumped to $ 10 billion in the second quarter. The impressive 38% growth is attributed to higher prices for microcircuits, as well as increased demand for consumer electronics.

According to research firm Trendforce, prices for DRAM chips, widely used in servers, mobile phones and other computing devices, jumped 27% from the previous quarter, while prices for NAND flash chips that serve the storage market rose by 8.6%.

Profits have also increased in Samsung’s contract manufacturing and chip development business, in part as work at the Texas plant has returned to normal. However, Samsung smartphone shipments fell to about 59 million in the second quarter from 76 million in the first quarter, according to Shinyoung Investment & Securities. Lower demand from India, hit hard by the pandemic during the quarter, as well as a shortage of parts, hit smartphone shipments.

Although the company shipped significantly fewer smartphones than the quarter earlier, Samsung expects strong performance due to the huge demand for chips.

Samsung reportedly earned the highest operating income since 2018 in the past quarter. The financial statements will be published tomorrow.

Samsung’s numbers skyrocket despite smartphone division failure

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