Samsung logs 12% profit increase in 2Q on strong chip demand
Samsung Electronics Co. has reported its operating profit rose 12% in the April-June quarter thanks to strong demand for server chips
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Samsung Electronics Co. has reported its operating profit rose 12% in the April-June quarter thanks to strong demand for server chips.
The world’s top producer of smartphones and memory chips said in a statement Thursday that its operating profit for the last quarter rose to 14.1 trillion won ($10.8 billion) and its consolidated revenue climbed to a second-quarter record of 77.2 trillion won ($59 billion).
Profitability of the memory business improved as the company “focused on meeting solid demand for servers under the disciplined sales strategy to meet market demand, helping to maintain average selling prices,” it said.
The strength of the U.S. dollar against the Korean won benefited its components businesses, giving Samsung a 1.3 trillion won ($1 billion) company-wide gain in operating profit compared to the previous quarter.
Samsung predicted server demand will remain solid but PC and mobile demand is likely to weaken further after the boom at the height of the pandemic, when people were adjusting to working from home.
"For the second half, smartphone market demand is forecast to stay similar year-on-year or show single-digit growth with prolonged geopolitical issues and economic uncertainties,” the company said.