Samsung Q2 profit spikes to $10bn

Photo: EPA

The South Korean electronics conglomerate Samsung announced a 38% surge to $10 billion in operating profits as chips price rose and consumer and demand recovered from the Covid-19 economic downturn. The recovered investments in data centres also spurred the business activity of Samsung, Reuters reported.

The Q2 2021 performance is up 20% from the first quarter and marks Samsung's highest operating income for the second quarter since 2018. Revenue is seen rising by 15.4%. The company's chip division likely benefited from memory chip price hikes that exceeded market estimates, analysts said, while shipments posted robust growth. Prices of DRAM chips, widely used in servers, mobile phones and other computing devices soared by 27% compared to the March quarter, while those of NAND flash chips that serve the data storage market increased 8.6%.

Profit also rose at Samsung's chip-contract manufacturing and logic chip design business, partly because operations at its storm-hit Texas factory returned to normal. The chip division's operating profit in April-June rose by some 22% from the year-earlier period. Still, Samsung's smartphone shipments fell back in April-June as sales slowed for its latest flagship model, launched in mid-January. Lower demand from India, hard hit by the pandemic during the quarter, as well as tight supply for some mobile processor chips may also have affected shipments.

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