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Samsung set for bumper Q2 despite smartphone slump

Samsung is expected to report its best second-quarter results in four years, despite its lack of immunity from the current struggles in the smartphone industry.

Analysts believe quarterly revenue rose from 12.57 trillion won to 14.46 trillion won for the three-month period, with demand for its components – and memory chips in particular – to offset any decline in phone revenue.

Chip revenue is likely to have increased 49% to 10.3 trillion won, driven by demand for consumer electronics and data center server equipment, especially among major cloud service providers.

smart phone sales

However, the Korean mobile giant’s business is believed to have fallen 17% to 2.7 trillion won during the relevant period, with shipments totaling between 61 and 68 million units.

Geopolitical challenges, lockdowns in China and inflation are impacting consumer demand, denting optimism that 2022 will see a market rebound after the impact of global lockdowns, economic uncertainty and industry-wide component shortages. (Opens in a new tab) All of which saw sales decline in 2020 and 2021.

One analysis suggested that total shipments fell by 11% during the first three months of 2022, with the above-mentioned problems exacerbated by traditionally slow seasonal demand.

However, Samsung is still the world’s leading smartphone maker, ahead of Apple and many Chinese manufacturers. Its wide range of devices means it has a strong interest in multiple levels of the market, including the premium segment, and it would be optimistic about a future recovery with the spread of 5G.

Across Reuters (Opens in a new tab)

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