Samsung’s Q2 2021 profits up 40.3% YoY, mobile profits up 66.1% YoY

Samsung has reported its earnings for Q2 2021 that ended June 3, 2021 in which the company has made an operating profit of 12.57 trillion won, up 40.3% YoY. This is due to solid growth in Semiconductor business. It posted 63.67 trillion won consolidated revenue, up 20.2% YoY.

However, IM sector that includes Mobile Communications and Networks Businesses posted 22.67 trillion won consolidated revenue, down 9.25% YoY and 3.24 trillion won operating profit for the quarter, up 66.1%.  Revenue declined from the previous quarter due to component supply shortage in the industry as well as production disruptions in its Vietnam factory.

However, the company posted solid double-digit operating profit margin by minimizing impact through rebalancing supply with its global SCM capabilities and through solid contributions from products in the
Galaxy Ecosystem-including tablets and wearables-our improved cost
structure, and efficient allocation of resources.

For Q3 2021 Samsung expects to achieve solid revenue and profit by boosting the competitiveness of the product line up with the launch of new foldable models on August 11th, solidify leadership in premium segment by mainstreaming the foldable category based on innovative new products while also maintaining sales momentum of Galaxy S series and the expansion of mass market 5G phones. The company will also continue to increase sales of the Galaxy Ecosystem products (including tablets, PCs, and wearables) to achieve solid revenue and profits while also strengthening the foundation for future growth.

For the second half of the year, the mobile market is forecast to recover to the pre-COVID level on an annual basis as 5G adoption and contactless trend continue to thrive. However, uncertainties over component supply and COVID-19 will continue to persist, said the company.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram