Samsung reported that it earned a net income of $8.5 billion on revenues of $59 billion for the quarter ending June 30. That latter figure is up an incredible 21.6 percent year-over-year (YOY), but it was also the first quarter in a year in which the firm didn’t post record revenues.
“Overall market demand declined from the previous quarter amid geopolitical issues and concerns over inflation on top of continued weak seasonality,” Samsung said of its smartphone business. “Profitability decreased from the previous quarter at some degree due to rising costs of components and logistics as well as negative effects of foreign exchange movements. However, supply disruptions … were mostly resolved in the second quarter and Samsung secured its revenue growth year-on-year with solid sales of flagship models such as Galaxy S22 series and Galaxy Tab S8 series.”
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Samsung is the world’s largest maker of both memory chipsets and smartphones. Its Memory Business posted an operating profit of $7.7 billion on revenues of $22 billion. And its Mobile Experience and Networks Business posting an operating profit of $2 billion on revenues of $23 billion.
Samsung also makes displays that used by a wide variety of third parties, most notably Apple. That business posted an operating profit of $8.1 billion on revenues of $5.9 billion.
Looking ahead, Samsung said it would “continue to maintain high growth momentum with the release of new watch models, expanding Galaxy Ecosystem devices.” It also plans to improve its product mix by focusing on flagship products and “mainstreaming” its foldable lineup. And it will expand its SmartThings smart home platform.