There is no doubt that in 2021, the South Korean group Samsung Electronics is still the king of chips and smartphones. The company posted record sales for the fourth quarter of the past year. More generally, Samsung is expected to announce record revenue and operating profit for 2021.
South Korean giant achieves exceptional fourth quarter 2021 thanks to orders placed with its foundries
Contrary to what the news and the shortage of semiconductors affecting many industries might suggest, Samsung is in great shape. Factory closures in countries hit by the Covid-19 pandemic and consumer concerns have also not had a real impact on Samsung’s business. Indeed, the South Korean giant is doing very well and even take advantage of the shortage of electronic components : Orders placed with its foundries have skyrocketed.
Apple’s Head of M1 Chip Development (Re) Heads to Intel
In one Press release released on January 7, 2022, the company released fourth quarter results. This is a first estimate that will be refined at the end of the month, but Samsung estimates it has an operating profit of 13.8 trillion won (the equivalent of 10.1 billion euros), an increase of 52% compared to the same period in 2020. It is quite simply the best quarter in the history of the South Korean giant. Sales were also up: 74 billion won, or about 54 billion euros, up 23.5% from 2020.
Record annual turnover
Samsung takes the opportunity to unveil initial estimates on the overall turnover for the year. It is estimated to be around 279 trillion won, or 210 billion euros. It is also the biggest turnover in its history. To achieve such results, the South Korean company has taken advantage of soaring demand for semiconductors and for memory modules, essential to equip all electronic products in the world. Many industries are now dependent on these components: automotive, IT, video games …
Samsung has also benefited from the exceptional sales of its smartphones. According to estimates by the analysis firm Counterpoint, the high-end segment was the most buoyant in 2021. The Galaxy Z Fold 3 and Galaxy Z Flip 3 models drove sales higher. Samsung remains the undisputed world leader in the field of smartphones, with a 19% market share in 2020. The South Korean giant is said to have sold 67 million smartphones during the fourth quarter of the year …
Analysts believe 2022 could be an equally strong year. However, a shadow hangs over the production of RAM and flash memory. Indeed, the containment of Xi’an and its 13 million inhabitants worries Samsung Electronics. The group produces 42.5% of its memory modules in this huge Chinese city (15% of the planet’s needs). Which leaves fear the arrival of a new shortage. The factories have not completely come to a standstill yet, but Samsung recognizes that this lockdown could cause disruption for all of the world’s electronics.