Samsung has recorded its highest quarterly revenue, citing increased sales of smartphones, TVs and home appliances.
The communications giant has revealed while its revenue for the fourth quarter of 2021 was $63.7 billion, bonuses given to staff of $11.5 billion in the quarter meant its profits were lower than the previous quarters.
The corporation In addition recorded new record revenue of KRW 279.6 trillion (US$232.5 billion) for the entire year of 2021, as well as operating profits of KRW 51.63 trillion (US$42.9 billion).
Due to the global supply chain crisis and a slight price drop, Samsung's memory business, which is typically it's most profitable, saw a drop in revenue from the previous quarter.
Furthermore, while memory product demand remained robust, the business claims it didn't push sales as hard as it usually does due to inventory levels and the market forecast.
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For the fourth quarter of 2021, the memory division reported consolidated revenue of KRW 26.01 trillion (US$21.6 billion) and an operating profit of KRW 8.84 trillion (US$7.35 billion).
tt had consolidated sales of KRW 26.41 trillion (US$21.96 billion) and an operating profit of KRW 10.06 trillion (US$8.36 billion) in the third quarter.
Samsung's combined mobile and consumer electronics company, officially known as Mobile experience or MX, reported consolidated revenue of KRW 28.95 trillion (US$24 billion) and operating profit of KRW 2.66 trillion (US$2.2 billion).
During the holiday season, high sales of its premium smartphones, like its foldable and Galaxy S series devices, as well as its PCs, tablets, and wearables, contributed to the modest gain in revenue.
Samsung's marketing efforts for its foldable and the debut of its future models this year, as in the previous quarter, had an influence on the division's earnings.
Meanwhile, thanks to strong demand for new smartphones, the company's mobile panel division saw an increase in earnings. However, due to a drop in LCD pricing and the early costs associated with its Quantum Dot displays, Samsung's large panel division suffered greater losses.’
Samsung also witnessed high sales of its premium and lifestyle TVs, but due to rising material and shipping costs, its visual display unit reported a reduced operating profit quarter over quarter.
Samsung anticipates growth in its memory business due to increased server demand in 2022, as well as growth in its display panel business due to new smartphone releases.
The business stated in its report that it expects COVID-related supply shortages and other concerns to persist and have an impact on its operations.
Despite these limits, it believes its MX business will continue to grow in revenue and profit, driven by its new flagships and increased sales of its mass-market 5G smartphones.
Samsung will hold an Unpacked event to reveal the next S-series flagship to successor the Galaxy S21 line-up.
