Seoul: Samsung Electronics Co Ltd turned its best April-June profit since 2018 with 11% year-on-year growth as demand for memory chips from server customers dented sales at inflation-hit smartphone makers. compensates.
The world’s largest memory-chip and smartphone maker said on Thursday that its second-quarter operating profit rose to 14 trillion ($10.73 billion) from 12.57 trillion won a year ago.
This was much less than the 14.45 trillion SmartEstimate won from Refinitiv.
Revenue likely rose 21% to ₹77 trillion from the same period a year ago, after Samsung issued a small opening earnings release in line with market expectations.
Samsung is due for a detailed earnings release this month.
Samsung’s chip profits were saved last quarter on what analysts think is an increasing rush to high-demand customers over the past two years, as the big US tech firms that use a lot of data center services. Keep buying chips to meet the demand of the cloud.
But prices for specific DRAM chips used in tech devices and servers fell about 12% last month, according to data provider Trendforce, and analysts expect prices to continue to fall as demand for smartphones and laptops weakens.
“Server DRAM has become the only effective sales outlet … therefore, Korean manufacturers indicated their willingness to discuss quarterly pricing reductions of more than 5% (for server DRAMs) for the first time,” said TrendForce .
Trendforce said the prices of NAND flash chips used for data storage in tech devices are also projected to decline 5% in the July-September period from the previous quarter.
Chipmakers around the world are facing two bumper cooling demand after years of the pandemic, when people bought devices to work remotely.
Rising inflation, worries about recession in major markets, war Ukraine China’s COVID-19 lockdown has slowed smartphone sales, with server chip demand being the only bright spot, analysts said.