Samsung Q2 solid on server-chip demand, smartphones cloud outlook - 05 iulie 2022

Samsung Electronics Co Ltd is likely to turn in its best April-June profit since 2018 with a 15% year-on-year rise, as lingering demand for its memory chips from server customers offsets lower sales to inflation-hit smartphone makers.

Operating profit for the world's biggest smartphone and memory-chip maker likely jumped to 14.46 trillion won ($11.2 billion) in the quarter, according to a Refinitiv SmartEstimate from 24 analysts, from 12.57 trillion won a year earlier.

Its chip earnings likely soared 49% to 10.3 trillion won, an average of seven estimates shows. 

The chip business accounts for about half of the South Korean tech giant's profits. Rival memory-chipmaker Micron Technology last week forecast much worse-than-expected quarterly revenue and said the market had "weakened considerably in a very short period of time", though it was confident about long-term demand. 

Samsung's mobile business profit is expected to have slipped some 17% to 2.7 trillion won from a year earlier, analysts said.

They expect the company's smartphone shipments to have dropped to between 61 million and 68 million units in the second quarter, from 74 million in the first.

Industrywide shipments of smartphones to China - the world's biggest smartphone market - are expected to shrink by 18% this year, according to Gartner. 

Shares in Samsung, which will announce preliminary results on Thursday, have fallen about 27% this year, versus a 38% slump in the Philadelphia Semiconductor index.

(US.SMSN)

https://finance.yahoo.com/news/samsung-q2-solid-server-chip-045919838.html?.tsrc=fin-srch