Samsung announced a record consolidated revenue of 76.78 trillion Korean won (US$54 billion) for the third quarter of 2022, while profit was down from the previous quarter and year on year. The operational profit of the IT behemoth (KRW 10.85 trillion or US$7.6 billion) has dropped 23 percent from the second quarter and 31.4 percent from the same time last year. Samsung’s operational profit from July to September 2021 was KRW 15.82 trillion, a 26 percent increase over the previous quarter. The firm said in its results report that its many divisions have been dealing with lackluster demand in the face of global economic turmoil.
Because of weak consumer product demand and client inventory changes, its Memory business’ profitability fell. Earnings from its LSI division declined to owe to sluggish demand for phones and TVs, but income from SoCs climbed due to an increasing part of 5G. Low demand and rising prices impacted Samsung’s Visual Display Business as well.
Last quarter, Samsung’s Mobile eXperience (MX) unit was its bright light. It reported consolidated sales of KRW 32.21 trillion (US$22.6 billion) and an operating profit of KRW 3.24 trillion (US$2.27 billion), both of which were higher than the previous quarter. The success of the MX business is attributed to sales of the Galaxy Z Fold 4 and Z Flip 4, both of which outperformed their predecessors. Furthermore, the Galaxy S22 series maintained “strong sales momentum.”
The internet behemoth anticipates that its mobile business will do even better in the fourth quarter, as demand for smartphones and wearables rises due to year-end seasonality. And, with the smartphone and wearable industries likely to rise overall next year, Samsung’s mobile sector may continue to generate excellent earnings. The IT giant’s Foundry business also performed well in the third quarter, delivering record earnings (KRW 23.02 trillion or US$16 billion in consolidated sales and KRW 5.12 trillion or US$3.6 billion in operating profit) because to strong demand from worldwide clients.
Samsung officially announced Jay Y. Lee as its executive chairman on the same day it reported its third-quarter results. It’s primarily a symbolic step, given that Lee is already the de-facto CEO of the corporation. However, as Bloomberg points out, the designation may benefit Lee as he negotiates partnerships with other firms across the globe to boost Samsung’s semiconductor and biotechnology industries. Lee, who was sentenced to five years in jail in 2017 after being found guilty of bribing public officials, was granted a presidential pardon in August in order to assist South Korea in overcoming its economic crisis.
