Samsung’s memory chip segment has helped the tech giant exceed financial analysts’ expectations by 1.2 trillion won (£763 million).
Samsung’s Q2 profits were expected to reach 11.3 trillion won. However, the company announced Wednesday that it managed to generate a profit of 12.5 trillion won for the quarter ended 30 June, with a 53.4% rise from the same period last year.
The impressive results were attributed to Samsung's memory chip shipments, which were significantly higher than expected and managed to provide the company with a profit despite a recorded decrease in its flagship smartphone shipments.
The demand for Samsung's premium smartphones weakened over 2020, with rumours circulating that its Note range could even be shelved indefinitely as the company focuses on more consciously priced offerings. The weakened demand caused the company's smartphone shipments to fall to about 59 million in the latest quarter from about 76 million in the first quarter, according to Shinyoung Investment & Securities.
Meanwhile, Samsung’s memory chip division, which focuses on DRAM chips widely used in servers, mobile phones and other computing devices, has risen by an estimated 20% since the first quarter.
This was partially credited to the reopening of Samsung’s two factories in Austin, Texas, which in February were forced to shut down due to extreme weather conditions ravaging parts of the US. The temporary suspension worsened an already critical shortage in the semiconductor supply chain.
RELATED RESOURCE
Top obstacles and business strategies for digital sellers
This survey reveals both challenges and emerging opportunities in 2021
The second quarter of 2021 also saw Samsung launch the "industry's first" 24G SAS SSD, capable of supporting twice the speed of its previous 12G SAS SSD. The company is planning to begin mass production of the SSD in the second half of this year and has already begun sampling it with select customers.
“Like we have done with the PM1653, Samsung will continue to collaborate with our customers to accommodate the ever-growing demand of the enterprise server market for the most uncompromising offerings available,” said Kwangil Park, senior vice president of the Memory Product Planning Team at Samsung.
Full details of Samsung’s Q2 financial results will be provided during an earnings call scheduled for 29 July.
-
Hounslow Council partners with Amazon Web Services (AWS) to build resilience and transition away from legacy techSpomsored One of the most diverse and fastest-growing boroughs in London has completed a massive cloud migration project. Supported by AWS, it was able to work through any challenges
-
Salesforce targets better data, simpler licensing to spur Agentforce adoptionNews The combination of Agentforce 360, Data 360, and Informatica is more context for enterprise AI than ever before
-
MSG giant Ajinomoto's chipmaking foray helps break financial recordsNews In addition to umami seasoning, the company produces a microfilm insulation used by the semiconductor industry which was repurposed from its amino acid technology
-
IBM unveils its 'most powerful' 433-qubit quantum processorNews The Osprey is three times more powerful than IBM's 127-qubit Eagle processor the company launched a year ago
-
Blackberry revenue falls by 4% as cyber security division takes hitNews Despite this, the company’s Internet of Things (IoT) division increased its revenue by 28% as it attracted new customers from the automotive sector
-
SK Hynix splashes out $11 billion on new semiconductor plantNews The company will produce memory chips, but will reportedly decided closer to the time whether they will be DRAM or NAND flash chips depending on market conditions
-
Intel strikes $30 billion private equity partnership to fund Arizona plant expansionNews Brookfield Infrastructure Partners will invest around $15 billion into the expansion of the chipmaker’s Ocotillo campus
-
The best 3D printer tools and accessories for your businessIn-depth Every business using 3D printers should be aware of these essential extras to raise its output to the next level
-
LED vs laser printers: Which is better for business?In-depth Laser and LED printer technology is similar, but each come with their own unique benefits that could make them best for your company
-
Intel to produce chips for Taiwanese manufacturer MediaTekNews The agreement comes after the US chip company managed to secure deals with Amazon and Qualcomm last year
