SEOUL—
Samsung
Electronics Co. reported record quarterly revenues and saw net profit jump by 59% in the first three months of the year, aided by resilient memory chip demand and a hotter sales start for its latest flagship smartphone.
The South Korean tech giant reported a first-quarter net profit of 11.3 trillion won, or the equivalent of roughly $8.9 billion. That compares with 7.14 trillion won from the year-earlier quarter.
Samsung, the world’s biggest maker of chips, smartphones and televisions, posted revenue of 77.8 trillion won for the quarter ended March 31. It marks a 19% rise from the year-earlier quarter.
The Suwon, South Korea-based company is considered an industry bellwether as it’s a major electronics maker as well as a component supplier for major tech companies such as Apple Inc. Samsung’s first-quarter results topped analyst expectations. The prior quarterly revenue record, of 76.6 trillion won, had been set in the October-December period of last year.
The performance reflects how semiconductor demand—and prices—generally have remained strong amid continued shortages in the opening months of 2022.
Taiwan Semiconductor Manufacturing Co.
, the world’s largest contract chip-maker, earlier this month reported a 45% jump in net profit in the first quarter. On Wednesday,
Qualcomm Inc.,
best-known for its smartphone chips, reported record quarterly revenue despite a drop in global handset shipments.
In the first quarter, Samsung’s profits were boosted by strong sales of memory chips, its main cash-cow business. Prices have stopped rising, a sign that supply is catching up, though remain higher than what they were a year ago. The South Korean tech company’s semiconductor operating profit in the first three months of the year rose 152% from the prior year to 8.45 trillion won, while revenues rose 39% to 26.9 trillion won.
Samsung’s first-quarter earnings were also helped by higher initial demand for its latest Galaxy S22 flagship smartphones, which hit shelves in February. The premium devices bring in the highest margins and are the core drivers of the company’s smartphone profits.
Global demand is 20% higher for the Galaxy S22 than its predecessor, based on the first six weeks of sales, Samsung recently said.
The company’s mobile and networks division logged first-quarter operating profit of 3.82 trillion won, a 13% drop from the prior year. But revenue rose 11% to 32.37 trillion won.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
