- The cloud business industry drives demand for storage chips, a market in which Samsung is a major player.
- Memory chip sales are doing well for Samsung, which posted its best second quarter since 2018.
- Samsung racked up operating profit of US$10.8 billion, 11.1 percent more than a year ago.
Samsung is positioned among the 20 technology companies with the highest brand value. It is also one of the leaders among the highest-revenue and highest-profit tech firms.
The South Korean company also is the best firm in the world to work for, according to The World’s Best Employers 2021 list. This latest information is from Statista, which surveyed 150,000 full-time and part-time employees from nearly 60 countries who work for multinational companies and other institutions.
To sustain itself in these places of privilege, it needs to add income and benefits, especially in a scenario of global conflicts and recurring inflation, according to what is published Reuters.
Samsung revenue and profit
Let’s see how it fared in its second fiscal quarter of 2022, data that was published by the Korean company this Thursday, July 7.
According to the firm, posted its best second-quarter (April-June) profit since 2018.
The cause: the sale of memory chips to customers offering cloud server services.
That’s right, while it didn’t do well with smartphone demand, its memory chips were big drivers of revenue.
In this stage, Shares of the world’s largest smartphone and memory chip maker rose 3.1 percent on the stock market.
Samsung posted operating profit of 14.1 trillion won (about US$10.8 billion), which is 11.1 percent higher than the 12.6 trillion won in the second quarter of 2021. The data is below than predicted by Refinitiv’s Smart Estimate.
Samsung’s turnover, meanwhile, rose 21.1 percent to 76 trillion won.
Changes in the global scenario
Samsung’s big quarter comes just as analysts say it’s starting to see a glut in chip supply because demand is slowly falling.
It should be noted that the chips manufactured by Samsung are the ones used to store data (memory chips), they are not the processor chips, which are the ones that have the most supply problems and that have generated a bottleneck in the production of various industries, such as automobiles.
Other manufacturers of memory chips are Micron and Advanced Micro Devices.
Due to the increased supply, prices have begun to fall, which could complicate Samsung’s future income.
Prices for DRAM chips, used in many devices and some servers, fell 12.1 percent in June, according to data from Trend Force.
Values of other chips, NAND-Flash, used in small data storage devices, are also estimated to fall 5 percent in the coming months.
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