(2nd LD) Samsung Electronics’ first-quarter profit jumps 50.5 percent, driven by server chips, mobile sales

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By Woo Jae Yeon

SEOUL, April 28 (Yonhap) — Samsung Electronics Co. on Thursday reported its finest first-quarter earnings in 4 years, due to stable demand for chips and cellphones.

The world’s largest maker of reminiscence chips and cell telephones mentioned its working revenue rose greater than 50 p.c to 14.1 trillion received ($11.1 billion) 12 months on 12 months, in a regulatory submitting.

Its January-March working revenue topped a market consensus of 13.2 trillion received from a survey by Yonhap Infomax, the monetary arm of Yonhap Information Company.

Internet revenue jumped 58.5% year-on-year to 1.13 trillion received.

Gross sales rose 18.9% on the 12 months to 77.7 trillion received within the first quarter, an all-time quarterly file and the third consecutive quarter the tech big has reported greater than 70 trillion received in quarterly gross sales.

Samsung’s reminiscence enterprise reported 26.87 trillion received in gross sales from January to March, a file quarterly gross sales. The trade gained 8.45 trillion received in working revenue, about 60% of third-quarter revenue.

The value of reminiscence has dropped lower than beforehand anticipated, due to stable demand for chips utilized in servers and PCs, Samsung mentioned.

Robust demand is predicted to proceed within the second half as “World corporations and cloud service suppliers are rising their infrastructure investments as they transfer into new progress areas equivalent to synthetic intelligence and machine studying,” Han Jin-man , government vp and head of world reminiscence gross sales and advertising and marketing, throughout a Thursday morning earnings name.

Its foundry enterprise, or contract chip manufacturing, achieved all-time gross sales within the first quarter as demand was stable from all purposes and superior course of yields improved.

Kang Moon-soo, senior vp and head of Samsung’s foundry technique and market workforce, mentioned the foundry enterprise will proceed to enhance within the coming years.

“If you happen to take a look at our order e-book for the following five-year interval, the (complete) orders are about eight occasions the earlier 12 months’s income,” he mentioned.

Whereas gear supply occasions have elevated on account of disruption to international provide chains, inflicting issues, he mentioned the corporate was responding to the issue by “by maintaining our gear investments flexibly in step with the state of affairs within the trade.”

The cellular and community companies reported 32.37 trillion received in gross sales and three.82 trillion received in working revenue.

The cellular enterprise noticed progress when it comes to gross sales and profitability from the earlier quarter, due to the success of its newest Galaxy S22 collection launched in late February, Samsung mentioned.

The tech big had anticipated its telephone enterprise to stay stable within the coming months, with the anticipated launch of latest foldable smartphones.

“We’re at present engaged on making ready the brand new foldable mannequin scheduled for launch within the second half of the 12 months,” mentioned Kim Sung-koo, vp of cellular enterprise at Samsung.

The corporate goals to make its foldable smartphone collection one other “high pillar subsequent to the Galaxy S collection in our enterprise,” it added.

In the meantime, its TV enterprise shrank within the first quarter amid weak demand for TVs, attributable to geopolitical dangers involving Russia and Ukraine and the lifting of pandemic restrictions in lots of nations.

Regardless of the uncertainties in demand, Samsung mentioned it was seeing alternatives within the premium and ultra-wide-screen segments.

Within the show sector, enterprise has improved from a 12 months in the past, pushed by sturdy premium merchandise together with Neo QLED TVs, in response to the corporate. Its house equipment enterprise posted file quarterly gross sales helped by premium BESPOKE merchandise.

Samsung mentioned it was winding down its liquid crystal show (LCD) enterprise, as beforehand introduced, to deal with the extra worthwhile natural light-emitting diode (OLED) sector.

The tech big additionally mentioned its efficiency was partially helped by the weak Korean received.

“US greenback power in opposition to the Korean received outweighed weak spot in some rising currencies, resulting in a constructive influence of roughly 300 billion received on working revenue in comparison with the earlier quarter,” the corporate mentioned.

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