South Korea’s Samsung Electronics Co Ltd posted its best April-to-June profit since 2018 on the 7th; this was followed by the estimated report analysis of Refinitiv due to memory chip sales.
Shares of SEC ltd rose to 2.5%, compared with a 1.5% gain in the broader market.
Samsung showed a profit of 14 trillion won/$10.7 billion, up 11% from a year ago, slightly lower than Refinitiv’s estimate.
The strong quarter for Samsung comes when other chipmakers have warned of an impending chip shortage, among customers hoarding during the pandemic to meet growing demand from people who work from home.
Chipmakers including Micron and Advanced Micro Devices AMD, recently reported a drop in demand as severe inflation dampened spending.
The war in Ukraine and the COVID-19 lockdown in China have slowed smartphone sales, leaving demand for server chips the only bright spot.
Samsung’s profits have been shielded by big US tech companies like Amazon, Microsoft, Google’s Alphabet, and Meta, which use a lot of data centre services to buy chips to meet cloud demand.
A strong dollar, hitting a 20-year high, may have helped Samsung’s second-quarter chip profits.
According to Counterpoint Research, Samsung’s mobile business in the second quarter was about 5% to 8% lower than the estimate in March.
The trend is the same for the world’s leading smartphone manufacturers, although there is a gap in some respect. Low- and mid-range smartphone demands were low, and the premium segment saw an increase.
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