On Thursday, South Korean tech giant Samsung Electronics said it is operating profit which got increased 53.3 percent in 2021, as record sales helped overcome pandemic-induced supply chain challenges.
13.87 trillion Won ($ 11.55 billion) rise the profit during October-December period in 2021, up from 9 trillion won is the same as previous year, said by worldâ€™s biggest smartphone maker.
While, having high memory chip prices and strong consumer demand, Samsung annual sales rise up of 279.6 trillion won in 2021, and around 18 percent increase from a year earlier, company said. Samsung reached â€œA record sales thanks to competitive products, despite continuing uncertaintyâ€, Tech giant said as a statement, singling out solid demand for its premium smartphone lines.
Samsung annual sales rise up of 279.6 trillion won in 2021
Covid impact on Samsungâ€™s chips
Â Covid-19 pandemic has cause destruction on the global economy, it has provided opportunities for many tech companies to boom. Pandemic-driven working from home has increased demand for devices powered by Samsung’s chips, home appliances, in televisions and washing machines.
The biggest memory chip maker, Samsung Electronics has aggressively boost up investment in its semiconductor business as the world clash with chip shortages that have hit everything from cars and home appliances to smartphones and gaming. The global chip supply shortage is expected into the New Year, analysts have said.
Samsung said, â€œIn Memory Business, demand is expected to grow as enterprises raise up IT investments while the Company will expand supply of high-performance products,”. They are planning to announce a new microchip factory in Texas, in November with an investment around of $17 billion. By end of 2024, plant is expected to be operational.
Samsung investing in the advanced technologies artificial intelligence, 5G and 6G communication.
Samsung investing in the advanced technologies development such as robotics and artificial intelligence, 5G and 6G communication. Memory chip prices were likely to decline in the first half of 2022, said by Park Sung-soon, an analyst at Cape Investment & Securities
Added “It is forecast around a 10 percent fall in chip prices in the first months of 2022, and it appears now that the decline scope will be in small- scale with strong demands for PCs and improved supply chains.”
Consumer demand rise higher for Foldable phones, it boosted profit during the holiday season. Samsung said it is expected the smartphone and premium television market to expand/grow in the third year of the pandemic, though it anticipated sustained “. The COVID-19 has ignited uncertainties and led to supply and logistics issues”.
Lee Jae- Yong the vice-chairman and the firm leader of Samsung conglomerate, returned from prison last august.
Samsung semi- conductor business accounted over 63.7% of Q4 total, which played a major role in the sprawling group. The profit that increased by semi- conductor at 8.8 trillion won in October- December. Samsung electronics is the largest group which controls business in South Korea, conglomerate overall around one-fifth of South Korea grosser domestic product.
Lee Jae- Yong the vice-chairman and the firm leader of Samsung conglomerate, returned from prison last august and back to management. Lee spent in prison because of bribery, embezzlement, corruption scandal for over two and half year, his return back to management concerns over decision-making at the Samsung.