The Prague Post - Samsung reports 53% jump in profit despite supply chain woes

EUR -
AED 4.293297
AFN 80.91457
ALL 97.787182
AMD 448.803483
ANG 2.093049
AOA 1072.008381
ARS 1467.658759
AUD 1.776114
AWG 2.107191
AZN 1.992006
BAM 1.954944
BBD 2.359867
BDT 142.117771
BGN 1.954944
BHD 0.440707
BIF 3482.375178
BMD 1.169038
BND 1.495545
BOB 8.093456
BRL 6.502078
BSD 1.168788
BTN 100.194128
BWP 15.604167
BYN 3.824825
BYR 22913.14706
BZD 2.347672
CAD 1.60129
CDF 3373.844424
CHF 0.929041
CLF 0.028934
CLP 1110.323824
CNY 8.380309
CNH 8.386416
COP 4691.84559
CRC 589.441902
CUC 1.169038
CUP 30.97951
CVE 110.21674
CZK 24.665189
DJF 208.128867
DKK 7.461795
DOP 70.379183
DZD 151.705573
EGP 57.855667
ERN 17.535572
ETB 161.021794
FJD 2.621276
FKP 0.865796
GBP 0.864385
GEL 3.16855
GGP 0.865796
GHS 12.154678
GIP 0.865796
GMD 83.590727
GNF 10140.559771
GTQ 8.978069
GYD 244.522931
HKD 9.175551
HNL 30.573613
HRK 7.533988
HTG 153.40283
HUF 399.5543
IDR 18972.787189
ILS 3.894218
IMP 0.865796
INR 100.333285
IQD 1531.029611
IRR 49231.122092
ISK 142.400984
JEP 0.865796
JMD 186.898163
JOD 0.828894
JPY 171.328427
KES 151.00388
KGS 102.232832
KHR 4685.948172
KMF 492.340851
KPW 1052.116012
KRW 1612.291055
KWD 0.357481
KYD 0.973974
KZT 610.66261
LAK 25187.970987
LBP 104720.046415
LKR 351.4761
LRD 234.337391
LSL 20.841074
LTL 3.451866
LVL 0.70714
LYD 6.314235
MAD 10.527091
MDL 19.787336
MGA 5177.732835
MKD 61.508068
MMK 2454.245682
MNT 4196.950222
MOP 9.450262
MRU 46.492642
MUR 53.144915
MVR 18.007558
MWK 2026.612611
MXN 21.771042
MYR 4.971339
MZN 74.772119
NAD 20.841074
NGN 1786.89858
NIO 43.011167
NOK 11.839321
NPR 160.310805
NZD 1.940152
OMR 0.449493
PAB 1.168788
PEN 4.144385
PGK 4.831884
PHP 66.037214
PKR 332.363469
PLN 4.253138
PYG 9058.033774
QAR 4.260834
RON 5.081579
RSD 117.098726
RUB 91.210062
RWF 1688.860502
SAR 4.384482
SBD 9.733981
SCR 16.479975
SDG 702.011685
SEK 11.176827
SGD 1.494854
SHP 0.91868
SLE 26.307644
SLL 24514.149043
SOS 667.907544
SRD 43.49699
STD 24196.728708
SVC 10.226522
SYP 15199.796755
SZL 20.847871
THB 37.929486
TJS 11.295954
TMT 4.103324
TND 3.419503
TOP 2.738009
TRY 46.93731
TTD 7.940523
TWD 34.1849
TZS 3029.973271
UAH 48.831018
UGX 4189.165697
USD 1.169038
UYU 47.259307
UZS 14766.534203
VES 133.584256
VND 30528.845862
VUV 139.77719
WST 3.204584
XAF 655.669903
XAG 0.030452
XAU 0.000348
XCD 3.159384
XDR 0.815443
XOF 655.669903
XPF 119.331742
YER 282.732293
ZAR 20.949587
ZMK 10522.750076
ZMW 27.056153
ZWL 376.429796
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Samsung reports 53% jump in profit despite supply chain woes
Samsung reports 53% jump in profit despite supply chain woes

Samsung reports 53% jump in profit despite supply chain woes

South Korean tech giant Samsung Electronics said Thursday its operating profit rose 53.3 percent in the fourth quarter of 2021, as record sales helped overcome pandemic-induced supply chain challenges.

Text size:

The world's biggest smartphone maker said its operating profit rose to 13.87 trillion won ($11.55 billion) for the October-December period in 2021, up from nine trillion won in the same quarter the previous year.

Thanks to high memory chip prices and strong consumer demand, Samsung had its highest annual sales of 279.6 trillion won in 2021, an 18 percent jump from a year earlier, the company said in a regulatory filing.

Samsung achieved "record sales thanks to competitive products, despite continuing uncertainty," the tech giant said in a statement, singling out solid demand for its premium smartphone lines.

While the Covid-19 pandemic has wreaked havoc on the global economy, it has helped many tech companies boom.

Pandemic-driven working from home has boosted demand for devices powered by Samsung's chips, as well as home appliances such as televisions and washing machines.

The world's biggest memory chip maker, Samsung Electronics has aggressively stepped up investment in its semiconductor business as the world battles chip shortages that have hit everything from cars and home appliances to smartphones and gaming consoles.

The global chip supply shortage is expected to persist well into the new year, analysts have said.

- Growing demand -

"In the Memory Business, demand is expected to grow as enterprises ramp up IT investments while the Company will expand supply of high-performance products," Samsung said.

In November Samsung announced a new microchip factory in Texas, a $17 billion investment. The plant is expected to be operational by the end of 2024.

Samsung is also investing in the development of advanced technologies such as artificial intelligence and robotics, as well as 5G and 6G communications.

Park Sung-soon, an analyst at Cape Investment & Securities, said that memory chip prices were likely to decline in the first half of 2022.

"Samsung's profit is likely to dip for the January-June period. But we also expect chip prices to turn around in the second half, giving a boost to company profits," he said.

"We had forecast around a 10 percent fall in chip prices in the first months of 2022 but it appears now that the decline scope will be smaller with solid demands for PCs and improved supply chains."

Consumer demand for high-end products, such as foldable phones, also helped to further boost profits around the holiday season.

Samsung said it expected the smartphone and premium television market to grow in the third year of the pandemic, though it anticipated sustained "uncertainties triggered by COVID 19 and supply and logistics issues".

Operating profits generated from Samsung's semiconductor business accounted for over 63.7 percent of the Q4 total, illustrating the major role the division plays in the sprawling group.

Samsung's operating profit from the semiconductor division stood at 8.8 trillion won for the October-December period.

Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea.

The conglomerate's overall turnover is equivalent to around one-fifth of South Korea's gross domestic product.

Samsung Electronics' record sales last year came as Lee Jae-yong, the firm's vice-chairman and the de facto leader of the wider Samsung conglomerate, returned to management on parole release from prison last August.

Lee had spent over half of a two and a half year sentence for bribery, embezzlement and other offences in connection with a corruption scandal that brought down ex-South Korean president Park Geun-hye before his release.

His return to management has eased concerns over decision-making at Samsung.

K.Dudek--TPP