Samsung vows to make foldable smartphones mainstream

Samsung's operating profit showed strong growth in the second quarter, thanks to higher-than-expected chip prices and continued consumer demand for electronics during the pandemic. The Korean electronics giant reported operating profit for the three months ending June 30 of 12.5 trillion won ($10.8 billion), an increase of 54 percent over the same time period last year. Its revenue increased nearly 20 percent to 63.6 trillion won ($55.2 billion).

Sales and profit growth for the fourth consecutive quarter for Samsung marks a full-year recovery for the company, which in the same period last year recorded a 7.4 percent drop in sales as consumer-facing businesses struggled as the coronavirus swept the world.

The main winner in the second quarter was the semiconductor sector. Which accounts for more than half of the company's operating profit. and approximately 35 percent of its sales. Samsung's semiconductor business increased 25 percent to 22.74 trillion won ($19.7 billion) and operating profit rose 27 percent to 6.93 trillion won ($6 billion).

Samsung attributed the rise to strong demand for server and computer memory, as well as stronger-than-expected increases in average sales prices for both DRAM and NAND chips. But Samsung expects component supply problems to continue in the second half. The chip market is expected to see continued supply problems for components. It may face risks from the mutating coronavirus and geopolitical tensions.

Moreover, the South Korean giant has benefited from having multiple sources of income. Including phones and hardware solutions. 

Samsung revenue soars

Its consumer electronics business also fared well, with sales of 13.4 trillion won, up 20 percent year on year. This is due to increased sales of products such as the recently launched Neo QLED, which features a revamped Mini-LED-based backlight system. The company sells more phones and TVs than any other seller. But it said revenue from the mobile division declined in the second quarter compared to the previous quarter. This is due to the coronavirus, ongoing component supply shortages in the industry as well as production disruptions.

The mobile division reported sales of 21.43 trillion won ($18.6 billion) in the first quarter, down 24 percent from the previous quarter. But an increase of 8 percent annually. Samsung expects the mobile phone market to start returning to pre-coronavirus levels in the second half of the year. Supported by 5G certification.

A one-time gain helped boost the company's displays business. That posted sales of 6.87 trillion won for the quarter, up 2 percent. This is despite the weak demand for mobile products. Looking ahead to the rest of the year, Samsung says it is solidifying its leadership in the premium smartphone segment. And that by popularizing the foldable category. While the display department confirmed that it is working on camera technology at the bottom of the screen.

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