Samsung reports record third quarter revenue despite global chip shortage
According to Engadget, Samsung had a record third-quarter revenue as it reported the U.S. Dollar equivalent of $63.1 billion for the period. That works out to a 10% increase for the top line while operating profit for the quarter came to $13.5 billion (or 26% higher than the operating profit reported during the previous quarter). $22.6 billion in revenue during the quarter came from Sammy's semiconductor business.
Samsungwas able to navigate its chip business through the global chip shortage "by flexibly operating its product mix." Samsung's mobile business also played a huge role in the company's record-breaking third-quarter. Thanks to strong sales of its flagship phones including foldables like the Galaxy Z Fold 3 and the Galaxy Z Flip 3, Samsung generated $24.2 billion in revenue during the period from July through September.
Demand for semiconductors improved thanks to strong sales of computers; the latter benefited from the increased number of people working at home because of the pandemic.
Renders of the Samsung Galaxy S22 Ultra
The company's profits were impacted by the larger marketing outlays it made for its foldable line. Strong demand for Samsung's phones also led its display business to deliver $7.5 billion in revenue. Earnings for the display segment were helped by strong demand for small to medium OLED panels. Demand for larger-sized displays was sluggish.
Samsung is optimistic about Q4 and 2022 results, but cannot estimate results for the chip business because of the supply issues in that market. For the fourth quarter, the company expects to report higher earnings "due to expanded supply of SoCs and related products for launches of new 5G smartphones in 2022."
The company expects that the Galaxy S22 series will be its first flagship series of the new year with the Galaxy S22, Galaxy S22+, and the Galaxy S22 Ultra kicking off 2022 in January. Meanwhile, investors were happy with the report as the shares soared 2.28% on Wednesday (or $1.45 USD) to $61.22.