Samsung Has Soaring Profits and Record Quarterly Revenue

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Samsung Electronics released this Thursday (29) the financial results for the second quarter of 2021, which proved to be quite favorable. The company posted a 34% jump in operating profit from the previous quarter, in addition to increasing revenue by 20% year-on-year.

According to the South Korean brand, total revenue was 63.67 trillion won, a record for the second quarter. Operating profit reached 12.57 trillion won, much higher than in 2020, while net profit was 9.63 trillion won (about US$8.4 billion), 73% more than obtained a year earlier.

In its report, the company said mobile profits had fallen compared to the previous quarter, blamed on chip shortages and disruptions caused by the pandemic. Cell phone sales reached 60 million units in the period ended in June, against 81 million in the first three months.

On the other hand, the semiconductor business “saw a significant improvement in earnings,” making Samsung cash in on chip manufacturing. Good numbers were also registered by the consumer electronics division, mainly with the demand for premium products, and with the display panel segment.

Expectations for the second semester

The launch of new folding cell phones and the expansion of 5G phones are among Samsung’s main expectations for the second half of 2021. It also said it expected favorable market conditions for the components business, but warned.

According to the company, the risks of continued interruptions in the supply of parts and uncertainties related to restrictions caused by covid-19 “will likely persist”, posing a risk to any forecast.

This same kind of caution was also adopted by Apple, which has already warned about the possibility that the shortage of processors affect the production of the iPhone and iPad.

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