Premium smartphones fuel Samsung gains

Samsung Electronics’ mobile unit posted double-digit revenue growth in Q1 despite weak global demand and component shortages, as strong sales of the Galaxy S22 series and new mass-market 5G models boosted ASPs.

On an earnings call, Mobile eXperience (MX) business VP Kim Sung-koo explained the Galaxy 22 Ultra accounted for a higher portion of sales than its predecessor, helping to drive revenue growth.

Kim forecast a recovery in worldwide demand for smartphones in the second half of the year and expects continued gains in smartphone ASPs as Samsung expands in the premium segment.

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The wearable market also is predicted to register high growth.

Turnover from the MX business increased 11 per cent year-on-year to KRW31.2 trillion ($24.6 billion). Smartphone sales fell 8.6 per cent to around 74 million units. ASP increased 14.4 per cent to $278. Tablet volumes were flat at 8 million units.

Operating profit for the MX and Networks unit fell 13 per cent to KRW3.8 trillion.

On a group level, net profit grew 56.6 per cent to KRW11.1 trillion, with revenue rising 19 per cent to KRW77.8 trillion, supported by a 39 per cent increase in semiconductor sales to KRW26.9 trillion.

EVP of investor relations Ben Suh said despite a highly challenging external environment, Samsung booked its third consecutive quarter of record sales, with double-digit growth across all divisions.