Strong demand for data center chips is boosting the profits of electronics giant Samsung. In its earnings outlook for the first quarter of 2022, the market leader in memory chips, smartphones and televisions expects operating profit to increase 53 percent year-over-year.
Earnings from core activities are expected to reach 14.1 trillion won (about 10.6 billion euros), the South Korean company announced on Thursday. According to the information, sales should have increased by 17.7 percent to 77 trillion won (58 billion euros). This would set Samsung Electronics a quarterly record. As usual, the company will only present exact company figures at a later date.
Despite supply chain challenges, Samsung’s semiconductor business in particular benefited from the high demand for data centers. Market observers assume that chip prices will continue to rise this year.
The business with smartphones and high-quality household appliances also developed strongly in the months from January to March. However, Samsung only launched its new flagship smartphone, the Galaxy S22, at the end of February.
Samsung will publish the final figures on April 28 – again on the same day as iPhone provider Apple. Investors then hope for insight into the company’s acquisition plans and a vision of the future chip business.
Samsung remains the leader in smartphones, but Apple is catching up
According to the analysis firm IDC, the South Korean group remained number one last year with 272 million devices and 20 percent of the smartphone market. But US rival Apple sold nearly 235.7 million iPhones, increasing its market share from 15.9 to 17.4 percent. IDC saw Chinese supplier Xiaomi in third place.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
