Samsung Electronics Reported Huge Profit Increase in Q1 2022

Samsung Electronics Reported on Thursday that an approximate 50 percent profit increase in the first quarter of 2022 was the highest since 2018. Samsung Said the profit beats their expectations and get a massive sales of memory chips and the products.

The officials say that the biggest support comes from its smartphones and Nand Flash Sale as Samsung’s World’s largest manufacturer of smartphones and memory chips maker. The sales also jumped in displays and the other smartphone part that Samsung provides to the other manufacturers.

Samsung put their first-quarter profit of about $11.6 billion in the preliminary release. Samsung gets an 18 percent increase from the past year and the profit beat their expectations and demand was at its peak.

“The guidance beat market expectations, probably due to memory chip shipments and better-than-expected prices,” said Park Song, an analyst at Cape Investments & Securities.

Although memory chip prices sank in the first quarter, analysts said solid demand from data center clients, as well as cautious investment costs from chipmakers and limited capacity expansion, boosted Samsung’s chip revenue. Diya, which is about half of its total profit.

The chipmaker also gets benefits from a disruption at a rival NAND Flash chip plant owned by Japan’s Kioxia and American firm Western Digital (WDC.O) due to the uncleanliness of raw materials.

Park Sung-soon Said “Due to the uncleanness issue at Kioxia, Samsung had rush orders for NAND Flash chips for products that were intended to secure from Kioxia”.

Data provider TrendForce said that the disruption at the Kioxia plant in early February is expected to boost the price of NAND Flash by 5% -10%, which is offset by the impact of slightly higher inventory maintained by buyers.

Samsung shipped an estimated 72 million smartphones in the first quarter, according to Counterpoint Research. Due to the late release of Samsung S22 seres the Sales get down 11 percent from the previous year.

Although the Sales of S22 were Boosted by 50 percent from the previous model S21 according to Sujeong Lim, an associate director at Counterpoint.

Lim said “Samsung estimates that the S22 series will ship just over 6 million units by the end of March and also said the initial sales were in beat their expectations.

Source / Via: Reuters & DigiWebix

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