Samsung’s revenue for the fourth quarter of 2021 reached $63.7 billion, the technology giant announced in its latest earnings report. That is a quarterly record for the company.
The company awarded bonuses to employees
The operating profit of KRW was 13.87 trillion (US $11.5 billion) in the quarter ending December 31. 2021. was lower than in the previous quarter. However, that was because of the bonuses that the company gave to the employees for the season.
The company also reported a new historical revenue maximum of KRW 279.6 trillion ($232.5 billion) for the full year 2021, along with an operating profit of KRW 51.63 trillion ($42.9 billion). Samsung’s memory business, which is typically the largest moneymaker, experienced a drop in revenue from the previous quarter because of the global supply chain crisis and a slight drop in prices.
While demand for memory products has remained strong, the company says it has not pressured sales as aggressively as it usually does after considering inventory levels and market prospects. The memory department reported merged revenue of KRW 26.01 trillion ($ 21.6 billion) and an operating profit of KRW 8.84 trillion ($ 7.35 billion) in the fourth quarter of 2021.
In the third quarter, it generated KRW 26.41 billion ($ 61 billion) in consolidated revenue and KRW 10.06 billion ($ 8.36 billion) in operating profit. Samsung’s combined mobile and consumer electronics business, now called Mobile eXperience or MX, generated KRW 28.95 trillion ($ 24 billion) in consolidated revenue and KRW 2.66 trillion ($ 2.2 billion) in operating profit.
The slight increase in revenue is mainly because of the large sales of its premium smartphones, its foldable devices and devices from the Galaxy S series. Also computers, tablets and wearables during the holiday season. As in the previous quarter, the department’s profitability was influenced by Samsung’s marketing efforts for its folding devices and for launching its upcoming models this year.
Growth is expected in 2022
Note the increase in earnings because of new smartphones. Although large screens require higher consumption, there are also losses. However, because of the falling prices of LCDs and the initial costs associated with its Quantum Dot screens. Samsung also saw strong sales of its premium and lifestyle TVs. Because of the increase in the cost of materials and logistics, the profit from visual screens decreased.
In 2022, Samsung expects growth in its memory business because of higher server demand and screen panel business than new smartphone releases. However, the company made it clear in its report that it also expects COVID-related and other supply problems to continue to be present and affect its business.
Despite these limitations, he believes his MX business will continue to bring revenue and profit growth driven by new flagship models and higher sales of 5G smartphones in the mass market. Samsung has an Unpacked event scheduled for February 9, where it will unveil the next flagship S-Series model that will inherit the Galaxy S21 line.