Samsung Electronics released its second quarter results, reporting 20 percent higher revenue and 54 percent higher operating profit year-over-year, despite its mobile division being hit by a component shortage. The company made operating profit of 12.57 trillion won (~$10.97 billion) and 63.67 trillion won (~$55.56 billion) in revenue.
Samsung says its mobile operations suffered from industry-wide component shortages and “production stoppages” at its factories in Vietnam, some of which were closed following a COVID outbreak. Combined with a weak seasonality, which resulted in lower demand, sales declined from the previous quarter, although they were still higher than a year earlier.
The semiconductor business remains Samsung’s largest financial driver, contributing more than a third of the company’s sales and more than half of its profits for the quarter. Samsung says memory demand and price increases were higher than previously forecast, although mobile memory sales were impacted by the same issues as its smartphone division.
Looking ahead to the rest of the year, Samsung says it will “solidify its leadership in the premium class”. [smartphone] segment by mainstreaming the foldable category,” while the display division confirmed it is working on under-screen camera technology. Samsung has scheduled an event for August 11 where it is said to be announcing new phones in the Galaxy Z Fold and Z Flip lines.