Memory chips and the Galaxy S22 family blow up Samsung’s profits

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Memory chips and the Galaxy S22 family blow up Samsung's profits

While it’s still a bit early for tech companies to know exactly how they fared financially in the first quarter of the year just ended, Samsung obviously isn’t looking to breaking with tradition, by publishing a official estimate for the period from January to March 2022 before collating all the detailed data a few weeks later.

Although well documented global supply chain issues that led to the Galaxy S22 series releasing later than originally planned, among other things, the world’s largest memory chipmaker and smartphone provider estimates its operating profit consolidated for the first quarter of 2022 will be between 14 and 14.2 trillion Korean won.
Given the midpoint of this estimated range, Samsung is likely looking at a net gain of around $11.6 billion for the first three months of this year, which would represent a small sequential improvement over chaebol. Q4 2021 profit score and an exceptional jump of around 50% from Q1 2021.
Perhaps even more impressive, 14.1 trillion won would be Samsung’s highest first-quarter profit in four years, and while the company hasn’t yet broken down that expected result by division, analysts unsurprisingly believe memory chips and smartphones will prove the quarter’s best performers .
back during In the first quarter of last year, for example, the semiconductor and mobile communications businesses were responsible for about 35 and 46 percent, respectively, of the technology giant’s relatively weak 9.38 trillion won operating profit. technology, a proportion that is expected to remain largely the same when the full Q1 2022 financial report comes out.
In terms of consolidated sales, Samsung is also eyeing a solid uptick, from 65.39 trillion won in the first quarter of 2021 to 77 trillion now, although Counterpoint Research (via CNBC) actually predicts a worrying 11% year-over-year decline in global smartphone shipments.
In line with initial expectations, Samsung would have been able to move “slightly more” 6 million S22, S22+ and S22 Ultra units by the end of March, beating the numbers posted by the Galaxy S21 family in its first week. uptime last year by a whopping 50 percent or more.
We’ll apparently have to wait until April 28 to learn more about the year-opening performance of each of Samsung’s distinct departments, but for now, kudos are likely in order for executives’ abilities to hold up against all recent shortage of chips and smartphone bug storms.