Memory chip sales are strong to drive Samsung’s 2022Q2 profit increase

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Samsung is expected to announce its revenue for the second quarter of 2022 on Thursday. Despite the poor performance of individual departments, according to relevant market participants, Samsung’s revenue in the second quarter of 2022 will increase significantly, and operating profit will increase by more than 15% year on year.

According to Sammobile, Samsung’s second-quarter 2022 revenue was mainly driven by strong demand for its memory chip business and chips used in data centers and servers. Related business segment revenue is expected to rise 42% with an operating profit of KRW 9.8 trillion ($7.4 billion).

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Contrary to the memory chip business, Samsung’s smartphone shipments have experienced a sharp decline, falling 16% in the second quarter of 2022 compared to the previous quarter, and operating profit is expected to decrease by 600 billion won ($457 million) compared to the same period last year.

Samsung Display‘s performance is also relatively average, and operating profit is expected to decrease by 300 billion won ($228 million) compared with the same period last year. The home appliance business was hit by rising raw material costs and inflation in the second quarter of 2022, coupled with sluggish market demand, and operating profit is expected to decrease by 50% compared to the same period last year.

As a super-large multinational group involving many different industries, Samsung’s overall performance can still be guaranteed. Samsung’s operating profit in the second quarter of 2022 is expected to reach 14.5 trillion won ($11 billion), a year-on-year increase of 15.6%, and the second quarter of 2022 revenue may reach 76.8 trillion won ($58 billion), up 20.6%, while net income could increase by 19.8% YoY and top 11.5 trillion won ($8.5 billion).

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