Samsung reports record revenue but reveals profit drop in Q4 2021

Deepak Gupta January 27, 2022
Updated 2022/01/27 at 9:08 PM

Samsung’s consolidated revenue for the fourth quarter of 2021 reached 76.57 trillion Korean won ($63.7 billion), the tech giant revealed in its report. last earnings report. That’s a record quarterly record for the company, which says its revenue growth in the period was primarily driven by expanding sales of its smartphones, TVs and home appliances.

Its operating profit of KRW 13.87 trillion ($11.5 billion) for the quarter ended December 31, 2021 was lower than the previous quarter, however, due to the bonuses it distributed to employees for the season. The company also posted a new all-time revenue record of KRW 279.6 trillion ($232.5 billion) for the full year 2021, along with KRW 51.63 trillion ($42.9 billion) in operating profits.

Samsung’s memory business, which is normally the biggest moneymaker, experienced a decline in revenue from the previous quarter due to the global supply chain crisis and a slight drop in prices. Additionally, while demand for memory products has remained strong, the company says it has not pushed sales as aggressively as it usually does after considering its inventory levels and market prospects. The memory division reported consolidated revenue of KRW 26.01 trillion ($21.6 billion) and operating income of KRW 8.84 trillion ($7.35 billion) in the fourth quarter of 2021. In the third quarter, recorded KRW 26.41 trillion ($21.96 billion) in consolidated revenue and KRW 10.06 trillion ($8.36 billion) in operating profit.

Samsung’s combined mobile and consumer electronics business, now called Mobile eXperience or MX, reported KRW 28.95 trillion ($24 billion) in consolidated revenue and KRW 2.66 trillion ($2.2 billion) in operating profit. The slight increase in revenue was mainly due to strong sales of its premium smartphones, namely its foldables and Galaxy S series devices, as well as its PCs, tablets and wearables during the holiday season. As in the previous quarter, though, the division’s profitability was impacted by Samsung’s marketing efforts for its foldables and for the launch of its upcoming models this year.

Meanwhile, the company’s mobile panel business saw a rise in profits due to solid demand for new smartphones. Losses became greater for Samsung’s large-panel business, however, due to a decline in LCD prices and the upfront costs related to its Quantum Dot displays. Samsung also posted strong sales for its premium and lifestyle TVs, but its visual display business reported lower operating income compared to the previous quarter due to rising material and logistics costs.

For 2022, Samsung expects growth in its memory business due to higher server demand and in its display panel business from new smartphone launches. However, the company made it clear in its report that it also expects supply issues related to COVID and other issues to persist and affect its operations. Despite these restrictions, the company believes its MX business will still deliver revenue and profit growth led by its new flagships and higher sales of its 5G smartphones to the mass market. Samsung has an Unpacked event scheduled for February 9, where it will introduce the next S-series flagship to succeed the Galaxy S21 lineup.

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