Samsung’s most recent financial results are nothing short of spectacular, with the manufacturer of semiconductors, smartphones, tablets, smartwatches, televisions, and home appliances proudly displaying a new all-time Q2 2022 revenue record to please investors and garner favorable media coverage.
However, even though the company’s operating profit is increasing year over year, from 12.57 trillion Korean won in Q2 2021 to KRW 14.1 trillion (10.8 billion US dollars) between April and June 2022, at least one important division is not doing well from the always important profitability standpoint.
This is the mobile (also known as MX and Networks) business, which managed to generate a more than respectable 29.34 trillion won in combined sales while reporting a very modest gain of about $2 billion during this year’s second calendar quarter.
Operating profit for Samsung’s market-leading smartphones was KRW 2.62 trillion, down from 3.24 and 3.82 trillion won in Q2 2021 and Q1 2022, respectively. Before you even consider it, you should be aware that the South Korean tech giant’s most recent financial report expressly calls out the Galaxy S22 and Galaxy Tab S8 families of ultra-high-end mobile devices as “strong” performers, suggesting that the division’s issues could be elsewhere.
The underwhelming and tardy Galaxy S21 FE and the less-than-value-packed newest members of the mid-range Galaxy A lineup are just a few of the obvious suspects, though Samsung is obviously not naming and shaming any low-performing products, instead blaming “some degree” of the declining profits of its mobile business on “rising costs of components and logistics as well as negative effects of foreign exchange movements.”
While the Galaxy Z Fold 4 and Z Flip 4 are anticipated to generate “solid profitability” in the second half of 2022, “prolonged geopolitical issues and economic uncertainties” could lead revenues to remain “similar year-over-year.” Yesterday, we reported the latest official trailer of the Galaxy Unpacked event was released where the new-gen Galaxy Foldable devices were teased.
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