Despite slowing smartphone sales, Samsung achieves its best ever Q2 profit since 2018
After revealing its earnings guidance a few days ago, Samsung announced its earnings for Q2 2022 earlier today. The company said that its revenue was KRW 77.2 trillion (around $59.1 billion), its best ever for second-quarter figures. The South Korean firm’s revenue was a 21% improvement compared to Q2 2021.
The company’s Q2 2022 profit was KRW 14.1 trillion (around $10.8 billion), its highest since 2018 and a 12% rise compared to the same quarter last year. Samsung achieved this despite the slowing smartphone market, thanks to semiconductor chip sales.
Galaxy S22 and Galaxy Tab S8 helped improve Samsung’s smartphone revenue
Samsung’s smartphone business saw its profits (KRW 2.62 trillion or around $2 billion) decline, but the revenue increased 31% year-over-year, thanks to solid sales of the Galaxy S22 and the Galaxy Tab S8. The South Korean firm expects the revenue to stay steady or increase in the single digits in the second half of this year. It also revealed its plans to expand its high-end sales with the launch of upcoming foldable phones.
Samsung Networks’ revenue increased, thanks to new clients, including DISH, which launched its nationwide 5G network in the US.
In the semiconductor business, the company’s sales were 18% higher than last year, bringing in loads of profits. Samsung expects demand in the mobile and PC category to weaken in the coming months. The Device Solutions business arm contributed KRW 9.98 trillion (around $7.6 billion) to the company’s operating profit.
Samsung Foundry registered its highest ever Q2 revenue
Samsung also announced that its contract semiconductor chip-making business (Samsung Foundry) received its highest-ever second-quarter revenue, thanks to improved yield. It also said that it was the first company in the world to ship advanced 3nm chips. The South Korean tech giant also said that it is looking to get contracts from new global clients and work on the production of second-generation GAA chips.
Samsung Display, the company’s display panel manufacturing segment, was the third biggest contributor, with a quarterly profit of KRW 1.06 trillion (around $810 million). Despite falling smartphone sales, this division kept up its performance by increasing the adoption of OLED panels in laptops and gaming devices.
While the company is selling its Quantum Dot (QD-OLED) panels at a loss, profits will increase in the second half of this year. It also said that it would promote the picture quality of Quantum Dot displays, which are used in the Samsung S95B and the Sony A90K, along with its partners and clients.
Samsung’s TV business is going through a slump
The company is more popularly known for its TVs, but its TV segment is going through a slump. It experienced its worst Q2 operating profit—KRW 360 billion (around $275 million)—in three years. Samsung said that the reduction in pent-up demand after the COVID-19 pandemic lockdown and macro-economic factors led to lower sales. A similar performance is expected to continue for the rest of the year.
On the other hand, the company’s digital appliances division, which includes ACs, dryers, refrigerators, microwaves, and washing machines, posted its highest revenue for the second straight quarter. Samsung announced that its BESPOKE lineup of home appliances has been attracting more buyers.
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