Samsung Electronics Reported fourth-quarter net profit of KRW 10.84 trillion, up 64 percent from a year earlier thanks to strong demand for its semiconductors and premium consumer devices like its foldable smartphones. Samsung said it expects a general recovery in global IT demand in 2022, supporting a ramp up in chip investments and premium products. However, the growth may be tempered by ongoing supply chain and Covid challenges, the company said.
Samsung's quarterly revenues rose 24 percent year-on-year to KRW 76.57 trillion, and operating profit was up over 53 percent to KRW 13.87 trillion. For the full year, it reported record revenue of KRW 279.6 trillion, up 18 percent, and operating profit increased to KRW 51.63 trillion from KRW 35.99 trillion in 2020.
At the mobile phone business, Samsung said sales increased in Q4 on a quarterly basis thanks to seasonal demand and expanded sales in the premium segment, such as its foldables and the S series, as well as sales of PCs, tablets and wearables, despite component supply shortage. Higher marketing costs, including to push foldables as mainstream products, impacted profitability.
Total revenues for the MX division were up 29 percent year-on-year and 1 percent on a quarterly basis, to KRW 27.70 trillion in Q4. Including the networks business, revenues rose 30 percent on an annual basis to KRW 28.95 trillion, and operating profit increased to KRW 2.66 trillion from KRW 2.42 trillion a year earlier.
A seasonal downturn is expected in Q1, but the recently released Galaxy S21 FE is expected to help lift the average selling price, while increased sales of mass market 5G smartphones should support revenue expansion. Over the full year 2022, Samsung expects growth in both the smartphone and wearables markets, and the company plans to focus on innovations in user experience with its premium devices and building out its connected ecosystem of products. Active expansion in the 5G networks business is also planned, including developing its own 5G core chips.
