Samsung released its Q2 2022 earnings report today, where the company recorded a significant slump in its consumer devices.
Blaming the economic uncertainties and geopolitical issues, Samsung saw a weakened demand for chips in consumer products. But, the demand for server chips has increased, pushing the company’s revenue growth to a new high last quarter. Here’s more;
Samsung Q2 2022 Earnings Report
Just a day after Google released its Q2 2022 earnings report, Samsung shared its own numbers for the same period – noting a consolidated revenue of KRW 77.2 trillion (US$59.4 billion). This was the new high Samsung recorded for the quarter.
The operating profit, on the other hand, was KRW 14.1 trillion (US$10.8 billion) – a 12% rise from the same period last year and its highest since 2018. Yet, Samsung saw a significant fall in the consumer chips business “due to widening impacts of macro issues.”
Samsung’s DRAM and NAND shipments came down, and the company expects the demand for consumer devices to be weak for some more time, so the profits from this segment are negative too.
This eventually affected Samsung’s Mobile eXperience (MX) business too, where the company said “geopolitical issues and concerns over inflation on top of continued weak seasonality” as the major reasons for all.
Yet, the company’s Device Solutions (DS) division has gone great. It noted a KRW 28.5 trillion (US$21.9 billion) in consolidated revenue and KRW 9.98 trillion (US$7.7 billion) in operating profit for Q2 2022, mostly driven by the server chip demand from enterprises.
We may see the consumer electronics industry with dull demand for the next couple of months, but Samsung may stay afloat with the launch of its new foldables – Galaxy Z Fold and Galaxy Z Flip. Both the devices are premium handsets scheduled to launch on August 10th at the company’s Unpacked event.