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Samsung Profits Boosted by Apple’s One-Time Payment to SDC Offsetting Drop in TV, Smartphone, and Panel Sales
Samsung posted its earnings report for Q221 has revenues up 20% Y/Y and net profits up 54% against a Q220 when the caused consumers to delay their purchases of electronics. Samsung revealed it expects the market to recover to a 2019 level in the second half of the year. The recovery of Samsung’s Austin foundry lab coupled with a price hike in memory, as worldwide demand rises, saw the semiconductor business boom this quarter. Samsung’s memory shipments exceeded previous guidance, with price increases higher than expected. Samsung Display scored a one-off gain from Apple, coupled with a price increase in mobile OLED products helped bolster the company’s earnings. This comes as the mobile sector declines, due to components shortages, and COVID-related production disruptions, although tablets and wearables earnings were able to somewhat plug this gap.
The IT & Mobile Communications Business at Samsung has reported a 9% increase in sales on a yearly basis but is down 22% from the previous quarter due to weak seasonality. While profit was 66% higher than Q2 2020, it decreased 26% on a quarterly basis. Samsung aims to solidify its leadership in the premium segment with the launch of new foldables to be announced in August. But the best case here are sales of 10m foldables vs. total smartphone sales of 275m.
Overall market demand for TVs decreased from the previous quarter “due to low seasonality” but was up Y/Y. The newly-launched Neo QLED coupled “demand generated by global sporting events” helped the Consumer Electronics Division to post solid profits.
“Looking ahead to the second half, Samsung expects demand to recover for mobile displays as major customers are planning to launch new flagship models (think iPhone 13), including high-value products such as foldable phones.
“However, there are concerns that a supply crunch of certain components such as DDIs may affect shipments for some customers. The Company forecasted strong sales of IT devices and portable gaming products featuring OLED screens.”
Samsung posted its earnings report for Q221 has revenues up 20% Y/Y and net profits up 54% against a Q220 when the caused consumers to delay their purchases of electronics. Samsung revealed it expects the market to recover to a 2019 level in the second half of the year. The recovery of Samsung’s Austin foundry lab coupled with a price hike in memory, as worldwide demand rises, saw the semiconductor business boom this quarter. Samsung’s memory shipments exceeded previous guidance, with price increases higher than expected. Samsung Display scored a one-off gain from Apple, coupled with a price increase in mobile OLED products helped bolster the company’s earnings. This comes as the mobile sector declines, due to components shortages, and COVID-related production disruptions, although tablets and wearables earnings were able to somewhat plug this gap.
The IT & Mobile Communications Business at Samsung has reported a 9% increase in sales on a yearly basis but is down 22% from the previous quarter due to weak seasonality. While profit was 66% higher than Q2 2020, it decreased 26% on a quarterly basis. Samsung aims to solidify its leadership in the premium segment with the launch of new foldables to be announced in August. But the best case here are sales of 10m foldables vs. total smartphone sales of 275m.
Overall market demand for TVs decreased from the previous quarter “due to low seasonality” but was up Y/Y. The newly-launched Neo QLED coupled “demand generated by global sporting events” helped the Consumer Electronics Division to post solid profits.
“Looking ahead to the second half, Samsung expects demand to recover for mobile displays as major customers are planning to launch new flagship models (think iPhone 13), including high-value products such as foldable phones.
“However, there are concerns that a supply crunch of certain components such as DDIs may affect shipments for some customers. The Company forecasted strong sales of IT devices and portable gaming products featuring OLED screens.”
