Samsung’s earnings report doesn’t break down the sales volume of the Galaxy S22 and Galaxy S21 phones. However, the company states that the latest flagships brought “significant revenue growth” from their predecessors a year earlier. This either means the new phones have sold in more quantity or buyers are preferring the expensive models (Plus and Ultra) over the vanilla Galaxy S22. Either way, Samsung seems to be pleased with the sales of its 2022 flagships. In its earnings report, Samsung also mentioned that the new foldables and wearables, i. e. the Galaxy Z Fold 4, Galaxy Z Flip 4, Galaxy Watch 5, and Galaxy Watch 5 Pro, are seeing solid demand in the market. This helped the company’s display division to post record revenue from the mobile panel business. However, weak demand for TVs and monitors means large panels posted a loss this past quarter. The Visual Display Business also suffered a decline in earnings due to weak demand and increased costs. Thanks to improving yield rates of advanced semiconductors, Samsung’s foundry unit posted a record quarterly revenue in Q3 2022. But a global decline in consumer spending hit its profits from the System LSI Business. Unsurprisingly, the Korean firm suffered a profit decline in the memory business as well. Samsung is the world’s largest memory chip manufacturer and often makes most of its money from the memory division.
Samsung suffered a 31% decline in profit in Q3 2022
According to Samsung, its operating profit in Q3 2022 was KRW 10.85 trillion (roughly USD 7.63 billion). That’s a massive 31.4 percent YoY decline in profits from the same period last year. The company reported an operating profit of KRW 15.82 trillion in Q3 2021. The latest figure also marks a 23 percent decline from the previous quarter, i. e. Q2 2022. Going forward, Samsung doesn’t expect any sharp turn in fortunes for the memory business in the fourth quarter of this year. It is anticipating things to improve only in the second half of next year. But the company is projecting a continuous positive growth trajectory for most other business lines, including smartphones. While it doesn’t have any major smartphone launches planned for this year, Samsung will start 2023 with the launch of the Galaxy S23 series.
