Samsung Electronics has announced a 20 per cent increase in revenue for the June quarter, as the memory market bounces back.
Samsung netted $USD8.2 billion during the quarter, as operating profit jumped 34 per cent, a second-quarter record for the company.
The recovery of Samsung’s Austin foundry lab coupled with a price hike in memory, as worldwide demand rises, saw the semiconductor business boom this quarter. Samsung’s memory shipments exceeded previous guidance, with price increases higher than expected.
The company’s Display Panel business scored a one-off gain from a “North America-based client in display”, coupled with a price increase in mobile OLED products helped bolster the company’s earnings.
This comes as the mobile sector declines, due to components shortages, and COVID-related production disruptions. Nevertheless, tablets and wearables earnings were able to somewhat plug this gap.
“For the second half, market conditions are expected to be favourable for the component business and the Company will focus on enhancing product and technology leadership,” the company notes in its statement.
In smartphones and consumer electronics, Samsung will enjoy the launch of its Z series of phones, expected to be launched next month. However, as the company notes, “risks of continued disruptions in component supply and uncertainties related to COVID-19 are likely to persist.”
“Looking ahead to the second half, Samsung expects demand to recover for mobile displays as major customers are planning to launch new flagship models, including high-value products such as foldable phones.
“However, there are concerns that a supply crunch of certain components such as DDIs may affect shipments for some customers. Meanwhile, the Company forecasts the sales of IT devices and portable gaming products featuring OLED screens to grow in earnest.”
Overall market demand for TVs decreased from the previous quarter “due to low seasonality” but was up year-on-year for the quarter. The newly-launched Neo QLED coupled “demand generated by global sporting events” helped the Consumer Electronics Division to post solid profits.
Samsung warns, as with other divisions, “COVID-19 related uncertainties continue to pose a risk for both TV and Digital Appliances businesses,” while noting they look forward to “improved demand for TVs” in the second half of 2021, due to stronger seasonality.
