In 2020, Samsung weathered the pandemic with a record third quarter revenue of 66.96 trillion won. The company just revealed that it set another record for the same period in 2021, reaching 73.98 trillion won, or about 63 billion dollars. While its revenue increased by around 10%, Samsung says its profits increased 26% from a year ago to 15.82 trillion won ($ 13 billion).
Despite a shortage of key chips around the world, the memory chips and processors that Samsung manufactures for everything from servers to cell phones are in greater demand than ever. Shift to hybrid work means businesses are buying more SSDs, processors and RAM for servers
As the world’s largest chipmaker, high memory chip prices mean high profits for Samsung, even as rising raw material and logistics costs have squeezed profits for its consumer electronics division. Sales of its memory division in particular were up 46 from the same period last year, while the profits of the semiconductor division as a whole nearly doubled from 5.54 trillion won to 10 .06 trillion won (~ $ 8.5 billion) (pdf).
Samsung is also the world’s largest phone maker and says it has seen strong demand for foldable smartphones like its Galaxy Z Flip 3 and Galaxy Z Fold 3 and the low to mid-range Galaxy smartphones it produces.
Despite reports of possible production issues and reduced manufacturing targets for Apple’s iPhone 13 line-up, Samsung says its mobile display revenue has increased “due to demand for newly launched products from Apple. the main smartphone customers ”. The largest customer that Samsung supplies its mobile OLED displays to is Apple, and that company will release its quarterly results tomorrow.
Looking ahead, Samsung expects strong earnings from its mobile displays in the fourth quarter, and not just from phones. There is a demand for OLED in larger devices like laptops, tablets, and especially game consoles like Nintendo’s new OLED Switch, which uses a panel made by Samsung.
When it comes to its TV business, the company is focused on the high end, saying it is on track to start producing new quantum dot sets that will continue Samsung’s fight against OLED TVs from LG.