Industry analysts agree that a fortunate set of circumstances will allow Samsung Electronics to break its operating profit record for the last quarter. The corresponding figure could reach $ 12.7 billion, 68% higher than the result of the same period in 2020. At the same time, they will surpass the record set in 2017.
Samsung Electronics has gained 12% in the previous two months, according to Reuters in anticipation of higher prices for memory chips, which are the main source of revenue for the company. According to KB Securities experts, the growth in demand for semiconductor components will be clear not only in the memory segment. According to their estimates, Samsung’s contract division received orders by the end of 2023.
This type of business has recently improved its profitability indicators, raising the rate of return above the 10% mark. This was facilitated not only by an increase in production volumes, but also by an increase in prices. Samsung’s profit from the sale of semiconductor components in the fourth quarter should double to $ 8 billion, according to experts. The preliminary results of the quarter will be available this coming Friday.
According to reports, the company’s mobile device business will show operating profit growth of 24% YoY to $ 2.5 billion, analysts expect. A lockdown in Xi’an, China, where Samsung is located, is not expected to have a significant impact on the company’s ability to consistently ship solid-state memory chips.
Gizchina News of the week
Samsung wants to achieve incredible success this year with Tiger strategy
According to the Chinese horoscope, 2022 will be the time of the reign of the Tiger; which will come into its own on February 1. Astrologers are already talking about the fact that this year will be eventful; someone will have to change life orientations and revise the principles. Change and transformation will be a priority. Samsung is also expecting changes, which today announced a new strategy with the symbolic name “Tiger”.
The main task is the more aggressive promotion of their devices on the market. The goals are ambitious: to become the number one company in all product categories; to increase the market share in the segment of premium devices with a price tag of more than $ 600; to increase user migration to Galaxy smartphones, and also to increase sales of smartphone accessories, including headphones.
Samsung‘s mobile division will strive not only to produce smartphones, but also smart devices. The goal is to become a brand that is revered by the youth audience and provides innovation.
