Thanks for the memory: Add Samsung to the list of tech giants raking it in despite supply concerns
(2021/07/29)
- Reference: 1627584006
- News link: https://www.theregister.co.uk/2021/07/29/samsung_q2_2021/
- Source link:
Samsung Electronics is flying high on the back of a surge in memory prices and demand expected to remain strong for the rest of 2021.
The South Korean tech monster reported record-breaking group revenue of ₩63.67trn ($55.5bn) for Q2 2021, up by a fifth year-on-year, as most business units surpassed the best estimates of senior management.
The chaebol also [1]recorded [PDF] a 54 per cent leap in operating profit of ₩12.57trn, with more than half of this attributed to its semiconductor business.
[2]
Device Solutions (DS), the largest division at Samsung, generated an 18 per cent rise in revenue to ₩29.47trn. Its semiconductor components, including memory, foundry and System LSI, turned over ₩22.74trn in sales, up 25 per cent and ₩6.93trn in operating profit, up 27 per cent.
[3]
[4]
This signals that operations were quick to stabilize following the unplanned [5]shutdown of Samsung's Austin foundry fab in February.
Samsung said in a [6]canned statement : "The semiconductor business saw a significant improvement in earnings as memory shipments exceeded previous guidance and price increases were higher than expected, while the company strengthened its cost competitiveness."
[7]Qualcomm's bumper Q3 growth comes with supply constraints warning, but Intel may ride to the rescue
[8]Samsung confirms no new Note this year, but does have a pen for foldables up its sleeve
[9]Intel and Samsung impacted as COVID closes electronics factories in Vietnam
[10]Samsung's latest spin on ISOCELL shifts camera tech from smartphones into autonomous vehicles
The Display business, also housed in DS, grew two per cent to ₩6.87trn, reporting a profit from operations of ₩1.28trn, up more than threefold on the corresponding quarter a year earlier.
The IT and Mobile Communications division grew nine per cent to ₩22.67trn, and within that operation the Mobile sub-division was up eight per cent to ₩21.43.
[11]
Samsung said it maintained profitability in its mobile communications business thanks to cost-cutting measures and a thriving wearable and tablet market.
The Korean multinational expects high demand in particular for mobile and data-center memory parts for the rest of the year due to 5G adoption and sustained server and PC demand. However, Samsung said this could be complicated by supply disruptions, COVID-19 factors, and geopolitical tensions.
Samsung Electronics said it plans to focus on "premium category leadership" in mobile to stay profitable. New [12]foldables are due to show up in August.
[13]
Samsung's Consumer Electronics business was up 32 per cent to ₩13.4trn, and its audio gear maker Harman grew 57 per cent to ₩2.42trn.
While the financials paint a rosy picture overall, smartphone sales dropped by 22 per cent from Q1 to Q2. Samsung chalked the plunge to industry component supply shortages and [14]production disruptions in Vietnam.
Though the results are collectively strong, shares fell anyway, seeing a two per cent dip this year. ®
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[1] https://images.samsung.com/is/content/samsung/assets/global/ir/docs/2021_2Q_conference_eng.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2021/02/17/texas_blackouts_semiconductor_fabs/
[6] https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2021-results?utm_source=mainkv&utm_medium=internal
[7] https://www.theregister.com/2021/07/29/qualcomm_q3_2021/
[8] https://www.theregister.com/2021/07/27/samsung_no_new_note/
[9] https://www.theregister.com/2021/07/15/vietnam_electronics_factory_closures_covid/
[10] https://www.theregister.com/2021/07/13/samsung_isocell_autonomous_vehicles/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2021/07/27/samsung_no_new_note/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2021/07/15/vietnam_electronics_factory_closures_covid/
[15] https://whitepapers.theregister.com/
The South Korean tech monster reported record-breaking group revenue of ₩63.67trn ($55.5bn) for Q2 2021, up by a fifth year-on-year, as most business units surpassed the best estimates of senior management.
The chaebol also [1]recorded [PDF] a 54 per cent leap in operating profit of ₩12.57trn, with more than half of this attributed to its semiconductor business.
[2]
Device Solutions (DS), the largest division at Samsung, generated an 18 per cent rise in revenue to ₩29.47trn. Its semiconductor components, including memory, foundry and System LSI, turned over ₩22.74trn in sales, up 25 per cent and ₩6.93trn in operating profit, up 27 per cent.
[3]
[4]
This signals that operations were quick to stabilize following the unplanned [5]shutdown of Samsung's Austin foundry fab in February.
Samsung said in a [6]canned statement : "The semiconductor business saw a significant improvement in earnings as memory shipments exceeded previous guidance and price increases were higher than expected, while the company strengthened its cost competitiveness."
[7]Qualcomm's bumper Q3 growth comes with supply constraints warning, but Intel may ride to the rescue
[8]Samsung confirms no new Note this year, but does have a pen for foldables up its sleeve
[9]Intel and Samsung impacted as COVID closes electronics factories in Vietnam
[10]Samsung's latest spin on ISOCELL shifts camera tech from smartphones into autonomous vehicles
The Display business, also housed in DS, grew two per cent to ₩6.87trn, reporting a profit from operations of ₩1.28trn, up more than threefold on the corresponding quarter a year earlier.
The IT and Mobile Communications division grew nine per cent to ₩22.67trn, and within that operation the Mobile sub-division was up eight per cent to ₩21.43.
[11]
Samsung said it maintained profitability in its mobile communications business thanks to cost-cutting measures and a thriving wearable and tablet market.
The Korean multinational expects high demand in particular for mobile and data-center memory parts for the rest of the year due to 5G adoption and sustained server and PC demand. However, Samsung said this could be complicated by supply disruptions, COVID-19 factors, and geopolitical tensions.
Samsung Electronics said it plans to focus on "premium category leadership" in mobile to stay profitable. New [12]foldables are due to show up in August.
[13]
Samsung's Consumer Electronics business was up 32 per cent to ₩13.4trn, and its audio gear maker Harman grew 57 per cent to ₩2.42trn.
While the financials paint a rosy picture overall, smartphone sales dropped by 22 per cent from Q1 to Q2. Samsung chalked the plunge to industry component supply shortages and [14]production disruptions in Vietnam.
Though the results are collectively strong, shares fell anyway, seeing a two per cent dip this year. ®
Get our [15]Tech Resources
[1] https://images.samsung.com/is/content/samsung/assets/global/ir/docs/2021_2Q_conference_eng.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
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[5] https://www.theregister.com/2021/02/17/texas_blackouts_semiconductor_fabs/
[6] https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2021-results?utm_source=mainkv&utm_medium=internal
[7] https://www.theregister.com/2021/07/29/qualcomm_q3_2021/
[8] https://www.theregister.com/2021/07/27/samsung_no_new_note/
[9] https://www.theregister.com/2021/07/15/vietnam_electronics_factory_closures_covid/
[10] https://www.theregister.com/2021/07/13/samsung_isocell_autonomous_vehicles/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2021/07/27/samsung_no_new_note/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YQMlFDmrCAp64oWaTBZPkQAAAAw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2021/07/15/vietnam_electronics_factory_closures_covid/
[15] https://whitepapers.theregister.com/