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Samsung Profits Jump With Increased Production Of Chips

Samsung stands to benefit from the policy of device manufacturers to go for chips with larger storage with higher performance.

Samsung Profits Jump With Increased Production Of Chips

The first quarter’s profit of Samsung far exceeded the analysts’, and it was on the back of sales of premium smartphones as well as memory chips. This was accompanied by a slowdown in demand for electronic gadgets. 

Samsung’s net income rose to 11.13 trillion won (S$12.2 billion) in the first-quarter ending in March. Samsung, which is South Korea’s largest company, disclosed this in a statement today. Trade analysts had predicted 10.14 trillion won on average as per estimates from various sources. Earlier this month, Samsung had disclosed its preliminary numbers. This included a 50% increase in the operation of profit. 

Samsung is the world’s largest smartphone and memory chip maker. Its revenue soared to record heights which were fuelled by increasing demand for semiconductors. Semiconductors power almost all the gadgets we see around us- smartphones, computers, servers, and smart cars, to name a few. 

Samsung stands to benefit from the policy of device managers to go for chips with larger storage with higher performance. However, concerns still remain that spending by consumers on personal gadgets is coming down.

Disruption in supply chains has been commonplace during China’s COVID-19-related lockdown, along with the war in Ukraine. Also, tighter monetary policy and a high rate of inflation in the USA have ended up beating down consumer sentiments. Smartphone sales across the globe went down 11 percent in the first quarter of this financial year, while PC shipments also came down by 6.8 percent. 

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