Significant gains
Things are going well for Samsung
01/27/2022 10:29 am
Electronics giant Samsung posts significantly more profit and revenue in the fourth quarter of 2021 thanks to its robust chip business. For the future, the group is massively relying on the new 5G standard for mobile phones. Chinese low-cost providers in particular are to be played off in this way.
The South Korean electronics giant Samsung wants to expand its position in the smartphone market with 5G cell phones. Most recently, things were going well for the group, in the fourth quarter it achieved its highest profit for this period in four years. Operating profit rose 53 percent to 13.9 trillion won (10.30 billion euros).
Profits in the chip division, the group’s largest, more than doubled to 8.84 trillion won. In the mobile phone business, operating profit rose by 9.9 percent. Group sales rose 24 percent to a record 76.6 trillion won (56.79 billion euros). At the beginning of January, the group had already published preliminary figures.
Samsung is massively relying on the new 5G standard for mobile phones in the future. Next-generation 5G smartphones will account for more than half of all smartphone sales in the market in 2022, Samsung mobile chief Kim Sung-koo said at an investor conference. In the mass market, Samsung wants to exploit consumer interest in 5G cell phones and thus expand its market share. The group also wants to bring out more mega hits in the mobile phone models.
According to analysts, Samsung could play off Chinese low-cost providers such as Xiaomi and Vivo outside of China. When it comes to chip shortages, the electronics giant sees no relaxation. The supply of non-memory chips is likely to remain tight as demand for them remains high, Samsung said. Dram memory chip prices, which fell 9.5 percent in the fourth quarter, according to data from TrendForce, should recover. These chips are used in data centers and technical devices.