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.
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.