Samsung Reports Quarterly Earnings

Posted on January 29, 2021 by Paul Thurrott in Android, Mobile with 7 Comments

Source: Getty Images

Samsung reported this week that it earned an operating profit of $8.1 billion on revenues of $55.3 billion in the quarter ending December 31.

For the full year, Samsung reported an operating profit of $32.3 billion on revenues of $212.8 billion; those figures represent gains of 29.6 percent and 2.78, respectively, over the previous year.

“Although challenges from the COVID-19 pandemic continue, company-wide efforts to ensure a stable supply of products and services globally helped Samsung’s fourth-quarter results,” the company noted in its earnings report. “Profit rose 26.4 percent year-on-year led by display and memory chip businesses, but fell 26.7 percent from the third quarter due to weaker memory prices and sluggish consumer products sales, as well as higher marketing costs and negative impact from the Korean won’s appreciation.”

A big part of Samsung’s success in the quarter came courtesy of Apple, as Samsung supplies the Cupertino supergiant with iPhone displays. As a result, Samsung’s display business had a record quarter, delivering an operating profit of $1.6 billion on revenues of $8.9 billion.

Samsung’s IT & Mobile Communications Division posted an operating profit of $2.2 billion on revenues of $20.1 billion, and the firm “credited strong year-end demand and gradual economic recovery.” And though profits and revenues declined quarter-on-quarter—with no major new product launches, that makes sense—Samsung’s mobile business still maintained double-digit profit margins. Looking ahead, Samsung expects a bump from the Galaxy S21 launch and upcoming “new mass-market products.” The firm expects market demand to recover from COVID-19 sometime in 2021.

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Comments (7)

7 responses to “Samsung Reports Quarterly Earnings”

  1. Avatar

    toukale

    I have to give Samsung a lot of kudos, despite all their issues with Apple they've done their best to keep Apple's business. Samsung have done what Intel could not. If there is anything we can learn from the Intel/TSMC is that Apple have the capital to fund your non-competitor for years and turn them into a great competitor. TSMC have been able to surpass Intel in large part because of Apple. Semi-conductor requires a lot of capital and for years Apple have helped fund TSMC r&d. Without Apple I don't think TSMC would have been able to surpass Intel just yet, Apple help them moved at a faster rate and Intel is now paying for that mistake.

    • Avatar

      behindmyscreen

      In reply to toukale:

      I am fairly sure Samsung maintains the profits with the revenue generating division to a considerable extent. Displays don't fund phones.

    • Avatar

      cavalier_eternal

      In reply to toukale:

      True story, a few years ago I was on a trip and sat next to an intel employee on a flight. In part of our conversation he was talking about how TSCM move to big player was solely due to Apple using them for chip production and without that capital they would have stayed a smaller player. So it isn’t like intel didn’t know what was happening. I guess they assumed it would never translate into TCSM making chips for desktops/portables?


      That said, I do think that view also diminishes TSCMs abilities, yes Apple capital helped them get to where they are but they did still have to solve the technical challenges of making the chips something that Intel has not done yet and that isn’t a capital issue.

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