Samsung expects the Galaxy S22 series to help it secure strong profitability in the first quarter of 2022.
what you need to know
- Samsung announced its financial results for the fourth quarter of 2021.
- The company reported revenue of 76.57 trillion won ($63.6 billion) and operating profit of 13.87 trillion won ($11.5 billion) for the quarter.
- The record quarterly revenue was driven by strong sales of the company’s high-end smartphones, TVs and home appliances.
Samsung Electronics announced its financial results for the fourth quarter of 2021 on January 27. The company reported consolidated revenue of 76.57 trillion won ($63.6 billion), a new quarterly record. Its quarterly profit record also hit a four-year high.
As for the full year, Samsung posted revenue of 279.6 trillion won ($232.4 billion) and operating profit of 51.63 trillion won ($42.9 billion). Samsung attributed the strong growth in revenue and operating profit to “expanded sales” of its best Android phones, smart TVs and home appliances. Operating profit was also driven by the strong performance of Samsung’s semiconductor business.
Samsung’s mobile and network businesses generated 28.95 trillion won ($24 billion) in consolidated revenue and 2.66 trillion won ($2.21 billion) in operating profit in the fourth quarter. The segment’s revenue increased compared to the previous quarter due to strong year-end seasonality and higher sales of premium phones, including foldable and Galaxy S-series models.
Samsung expects demand for smartphones and tablets to decline in the first quarter due to weak seasonality and continued uncertainty over parts supply. Despite these challenges, Samsung believes the Galaxy S21 FE and the new Galaxy S22 series of phones will give it “solid profitability.”
Samsung is also confident that its display panel business will continue to perform well, as demand for OLED screens is expected to increase further as 5G and foldable phones spread. The company aims to secure its technological leadership in high-end TVs with quantum dot displays, while kicking off its LCD line.