Samsung Electronics is estimated to reach its best Q2 profit in four years. The South Korean firm has estimated its operating profit to stand at KRW 14 trillion (around $11 billion) for the April 2022 – June 2022 period. The profit is up by 11.38% compared to last year, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency (via The Korea Herald).
Moreover, Samsung's semiconductor chip business is forecasted to improve by 20.9% to KRW 76.8 trillion. The details of the breakdown of its respective divisions have not been published yet, and the detailed earnings will be announced later this month. Such a rise in Q2 performance is due to the continuous demand for memory chips in servers and data centers.
Notably, during Q2 2022, global shipments of DRAM and NAND flash chips saw a rise of 9% and 2% YoY, respectively. However, the rise in inflation brought down consumer spending power, and its global smartphone and TV businesses hurt its performance at the bottom line during the three-month period ending in June.
The second half of this year is expected to be gloomy for Samsung since factors such as Ukraine, rising inflation, and China's COVID-19 lockdowns will impact demands across industries and further shrink consumer spending power. To give you some numbers, global smartphone shipments are expected to go down by 7.6% this year, as per Gartner.
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