Samsung's Q4 revenue rises 24%, driven by strong premium smartphone sales
Samsung expects the Galaxy S22 series to help it secure strong profitability during the first quarter of 2022.
- Samsung has announced its financial results for the fourth quarter of 2021.
- The company posted KRW 76.57 trillion (about $63.6 billion) in revenue and KRW 13.87 trillion (about $11.5 billion) in operating profit during the quarter.
- The record quarterly revenue was driven by strong sales of the company's premium smartphones, TVs, and home appliances.
Samsung Electronics on January 27 reported its financial results for the fourth quarter of 2021. The company posted KRW 76.57 trillion (about $63.6 billion) in consolidated revenue, setting a new quarterly record. Its quarterly profit record also reached a four-year high.
As for the full year, Samsung reported KRW 279.6 trillion (about $232.4 billion) in revenue and KRW 51.63 trillion (about $42.9 billion) in operating profit. Samsung attributes the strong growth in revenue and operating profit to "expanded sales" of its best Android phones, smart TVs, and home appliances. Operating profit was also driven by the strong performance of Samsung's semiconductor businesses.
Samsung's mobile and networks businesses generated KRW 28.95 trillion (about $24 billion) in consolidated revenue and KRW 2.66 trillion (about $2.21 billion) in operating profit during the fourth quarter. The business unit's revenue increased compared to the previous quarter due to strong year-end seasonality, as well as an increase in sales of premium phones - including foldable and Galaxy S series models.
Samsung expects demand for smartphones and tablets to decline in the first quarter due to weak seasonality and continued uncertainties over component supply. Despite these challenges, Samsung is confident that the Galaxy S21 FE and new Galaxy S22 series phones will allow it to secure "solid profitability."
Samsung is also confident that its display panel business will continue to perform well, as demand for OLED screens is expected to increase further with 5G and foldable phones growing in popularity. The company aims to secure its technology leadership in the premium TV segment with Quantum Dot displays while drawing the curtains on its LCD production line.