Samsung Electronics announces first quarter results for 2022

Achieves record quarterly revenue of $ 60 billion, and operating profit of $ 11 billion

Samsung Electronics today announced its financial results for the first quarter of 2022, which ended March 31, 2022, with consolidated total revenue for the quarter reaching a record $ 60 billion, and operations of $ 11 billion, an increase of 51% over the same period in 2017 last year. The Device eXperience division had the highest sales since 2013, while the Device Solutions division had the highest quarterly profit in its history.

The smartphone segment (Mobile eXperience) recorded successive increases in revenue and profits, thanks to the massive sales of the Galaxy Urtla S22, the introduction of new 5G models in the market and the high sales of tablets and watches, and the network business continued to expand worldwide to meet the needs of local expansion of 5G networks. .

Revenue is expected to grow significantly for the mobile experience business unit year on year due to the massive sales of Galaxy S22 series and the high sales of new 5G devices in the market. As the company expects to generate high profits by leveraging the capabilities of global supply chain management, despite the uncertainty over the macroeconomic level, and for the network business, the company seeks to gain new business opportunities.

At the screen level (Samsung Display Corporation), the company announced record profits for mobile screens, thanks to sales and the increasing demand from smartphone customers, and for large screens, the improvement in the productivity of (QD) screens exceeded expectations. Sales of the display business increased year on year with sales of premium, high value products like Neo QLED and Super Big TVs rising.

Cell phone screen sales are expected to increase thanks to the expansion of foldable products and the rapid spread of OLED screens to new applications such as information technology, games and cars. The big screen business will seek to take a leading position in this particular sector and limit losses by introducing QD screens.

The Mobile eXperience business expects to maintain a strong level of profitability while expanding its premium user base, increasing sales of new foldable products and sales of new devices that support the ecosystem. In the network business, the company will maintain growth by meeting the needs of domestic 5G devices and expanding to overseas markets, as well as continuing to build leadership for vRAN technology.

The Digital Devices business has achieved record quarterly revenue thanks to premium product growth, with a focus on SPORTED products. The Display business will focus on selling new models, including Neo QLED and The Freestyle, while the Digital Device business will seek to increase profits by improving product mixes while increasing the availability of BESPOKE products in the world market.

In the field of visual display, the company will consolidate its leading position in the market by expanding the sales of various strategic products, such as Neo QLED 8K and lifestyle products. The company will continue to focus on increasing sales of premium products despite ongoing challenges related to cost of materials and logistics.

The Memory Products business also had record server sales, due to increased demand for them, and System LSI Business results gradually improved with higher prices. For the foundry business, demand was strong across all applications as the company increased the amount of advanced operations.

Business results suggest that the company’s capital expenditure in the first quarter was $ 6 billion, including $ 5 billion spent on semiconductors and $ 547 million on exhibitions.

Smartphone profits remain steady despite lack of deals

The MX and Networks business reported $ 25 billion in consolidated revenue and $ 2 billion in operating profit for the first quarter.

Total market demand decreased on a quarterly basis and on an annual basis due to weak seasonal demand and unstable geopolitical conditions. However, the MX business saw growth in both revenue and profit compared to the previous quarter despite the deficit. Strong sales of the Galaxy S22 series since its launch in the first quarter have helped boost revenue growth, on the back of the Urtla Galaxy S22 with S-Pen receiving positive feedback from existing Galaxy Note customers. Mass market 5G phones, including the new A-Series as well as hardware ecosystem products such as tablets, including the Galaxy Tab S8 and portable devices, also contributed to earnings growth.


In the second quarter, demand for the smartphone market is expected to decline slightly on a quarterly basis amid uncertainty over the consequences of the Corona pandemic in the coming period and geopolitical issues. While the mobile business aims to ensure significant year-on-year revenue growth by leveraging its global capabilities in supply chain management. In addition to the improvement in the component shortage of the Galaxy S22 series, the company will strive to maintain strong sales of flagship smartphones while actively responding to the increasing market demand for the popular 5G network models.

Display revenue improves year-over-year: to focus on Premium OLED and QD screens in the second half

In terms of performance, Samsung reported $ 6 billion in consolidated revenue and $ 852 million in operating profit for the first quarter.

Mobile screen earnings also improved from the previous year, driven by strong demand for premium products and the positive effect of outgoing payroll movements. The increasing acceptance of OLED screens in laptops and game consoles has contributed to the results.

For large screens, Samsung introduced QD screens in the first quarter, which were well received in the market and thus raised expectations for QD TVs that would be released in the third quarter. In addition, the company is working to quickly stabilize the return of QD screens.

If we look at the second quarter, Samsung expects to see a decline in mobile screen earnings compared to the previous quarter, due to protracted geopolitical conflicts and restrictions in some regions. Big screen earnings are likely to improve in the second quarter, as the company will reduce production of LCD screens as planned and expand shipments of QD products.

Memory gains exceeded expectations with record quarterly server sales

The DS division reported consolidated revenue of $ 21 billion and $ 6 billion in operating profit in the first quarter.

Memory business performance exceeded market expectations as the price of memory fell below expectations due to the increasing demand mainly from servers and computers. However, the company has seen a slight decrease in profit due to the special one-time incentive and the seasonal nature of some applications.

In terms of DRAM, overall server demand remained strong due to increased DRAM content driven by increased acceptance of high-core CPUs and strong demand for data centers.

The company will also continue to pursue its high-quality portfolio by expanding sales of high-value-added, high-density products, while actively responding to applications for applications that show the greatest potential for growth.

More about Samsung Electronics Co., Ltd.

Samsung is an inspiring world leader shaping the future through innovative ideas and technologies. The company is redefining the worlds of TVs, smartphones, portable devices, tablets, digital home appliances, networking systems, memory chips, foundries, LSE and LED lighting solutions. For the latest news, please visit the Samsung Newsroom via the link: https://news.samsung.com/mena

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