Samsung Announces Q2 Results
Samsung has reported the financial results for the second quarter ended June 30, 2021. Total consolidated revenue was reported at KRW 63.67 trillion, a 20% increase from the previous year and Operating profit reportedly increased by 34% from the previous quarter to KRW 12.57 trillion, resulting from improved market conditions in the memory market, normalised operations at the Austin foundry fab and effective global supply chain management (SCM) that helped maintain profitability for the finished product businesses.
Samsung also reported that their Semiconductor business saw a significant improvement in earnings as memory shipments exceeded previous guidance and price increases were higher than expected. For the Display Panel Business, a one-off gain and an increase in overall prices boosted profits. Earnings at the Mobile Communications Business showed a decline from the previous quarter due to component supply shortages and COVID-19 related production disruptions. Despite this, Samsung reported that the business posted solid profitability as the company leveraged its global SCM capabilities, improved the cost structure as well as contributions from tablets and wearables. Its Consumer Electronics division posted ‘strong results’ which were driven by increased sale of premium products. For the second half, market conditions are expected to be favourable for the component business and the company says that it will focus on enhancing product and technology leadership. In smartphones and consumer electronics, the company aims to maintain solid profitability by strengthening the premium category leadership. However, risks of continued disruptions in component supply and uncertainties related to COVID-19 are likely to persist.
The Memory Business is expected to see continued demand growth for server and mobile products and Samsung will reportedly, accelerate migration to 15nm DRAM and 6th-generation V-NAND as well as expand the application of extreme ultraviolet (EUV) lithography process in DRAM production.
As for the Display Panel Business, the mobile panel segment is expected to improve and the company says that it will focus on finalising the mass production process for quantum-dot (QD) displays for shipment to begin within the year. Its Mobile Communications division expects revenue and profit by boosting the competitiveness of the product line-up with the launch of new foldable models and the expansion of mass market 5G phones and the company plans to continue the sale of the Galaxy Ecosystem products.