Samsung reports record-high sales in Q1 2022 | mobile earnings remained solid despite supply shortage
- calendar_month
- personNabin Pradhan
- schedule3 min read
Share:
Image Source: Getty Images
Samsung has released its earnings report for the first quarter of 2022. The Korean tech giant has reported a 51% increase in operating profit year on year, as it saw a yearly increase in both sales and operating profit in almost all divisions. Reporting an all-time high revenue of KRW 77.8 trillion (~$61.4 billion), Samsung saw an operating profit of KRW 14.12 trillion (~$11.06 billion) in the quarter ended March 31. This marks Samsung's highest first-quarter profit since 2018.
Samsung’s mobile and network businesses posted KRW 32.37 trillion (~$25.3 billion) in consolidated revenue and KRW 3.82 trillion (~$2.9 billion) in operating profit. According to the company, the overall market demand declined both quarterly and yearly due to weak seasonality and geopolitical uncertainties. However, the division saw growth in both revenue and profitability from the previous quarter despite supply shortages. Samsung’s mobile division was driven by its flagship Galaxy S22 series. Its mid-range A-series, Galaxy Tab S8, and wearables also contributed to the profit growth.
>>> The global smartphone shipment fell 11% in Q1 2022 | Samsung led the market
Image Source: Getty Images
Earnings from Samsung’s Memory division reached KRW 26.87 trillion (~$21.04 billion) in consolidated revenue and KRW 8.45 trillion (~$6.6 billion) in operating profit. The profit more than doubled a year earlier, as it was fueled by dynamic random access memory (DRAM) and NAND flash chips used in servers.
The company’s consumer electronics division registered KRW 15.47 trillion (~$12.1 billion) in consolidated revenue and KRW 0.8 trillion (~$626.9 million) in operating profit. Similarly, the growing adoption of OLED displays in laptops and gaming devices contributed to the earnings of the display division, which posted KRW 7.97 trillion (~$6.2 billion) in revenue and KRW 1.09 trillion (~$854.4 million) in profit for the first quarter.
In the second quarter, Samsung expects the macroeconomic uncertainties and logistics issues to persist. However, the company is focused on meeting solid demand and securing profitability with higher sales of new smartphone and TV products.
>>> Samsung was the leading semiconductor vendor in 2021 | Worldwide semiconductor revenue grew by 26%
