Samsung Electronics Q2 Operating Profit 8.1 Trillion Won... Memory Earnings Improvement (Update)

[Asia Economy Reporter Dongwoo Lee] Samsung Electronics announced on the 30th that it recorded an operating profit of 8.1463 trillion KRW and sales of 52.9661 trillion KRW on a consolidated basis for the second quarter of this year.

Operating profit increased by 23.5% compared to the same period last year, while sales decreased by 5.6% during the same period.

Samsung Electronics stated that while memory sales increased due to solid demand centered on data centers and PCs in the second quarter, overall sales declined due to weakened sales of set products such as smartphones caused by the impact of COVID-19.

Operating profit increased despite the COVID-19 pandemic due to improved memory profitability, one-time gains from displays, and the seasonal effect of home appliances.

In semiconductors, memory performance improved due to solid demand from data centers and PCs. However, NAND bit growth rate underperformed the market growth due to weak mobile demand and temporary capacity shortages in some applications. System LSI saw a decline in performance due to weakened mobile demand, but foundry performance improved due to partial recovery in customer demand.

In display panels, for small and medium-sized panels, smartphone demand decreased, but profits increased compared to the previous quarter due to one-time gains. For large panels, despite a decline in TV demand, the deficit slightly narrowed due to increased monitor sales.

In the mobile business (IM) division, wireless sales and smartphone sales volume declined compared to the previous quarter due to decreased demand caused by COVID-19, but solid profitability was maintained through cost efficiency such as reduced marketing expenses.

The home appliance business (CE) division improved profits compared to the previous quarter through product mix improvement by expanding sales of air conditioners, dryers, and premium TVs such as QLED, as well as operational efficiency.

This content was produced with the assistance of AI translation services.