Samsung Earns A Record $63.1 Billion In Q3 Despite A 6% Decline In Smartphone Shipments
Samsung earns a record $63.1 billion in Q3 despite a 6% decline in smartphone shipments
South Korean technology company Samsung reported revenue of $63.1 billion in the third quarter of 2021, the company's best quarterly result since the third quarter of 2018.
Samsung's significant revenue figures for the third quarter of 2021 represent a ten percent increase over the same period the previous year.
Aside from that, the company reported an operating profit of $13.5 billion, a 26 percent increase over the same period the previous year.
Although there is a global chip shortage, this remarkable growth has occurred despite the fact that major technology brands such as Apple, have experienced potential production issues, which have resulted in the reduction of manufacturing targets.
Despite a global shortage of semiconductor components, Samsung claims that it has been able to maintain its normal business operations by adjusting its product mix in a flexible manner.
Chips are becoming increasingly popular among consumers
Beyond smartphones and other electronic devices, Samsung also manufactures memory chips and processors that are used in a variety of applications ranging from servers to smartphones.
Even though rising raw material and logistics costs have reduced the profits of the company's consumer electronics division, the current increase in memory chip prices has resulted in a significant increase in the company's profits.
Despite the pandemics negative impact on many other businesses, the semiconductor division of the tech giant reported revenue of $22.6 billion in the fourth quarter. Profits increased by $8.5 billion, more than doubling the $4.8 billion earned the previous year.
The Galaxy Z Fold 3 and Galaxy Z Flip 3
Samsung's record-breaking third-quarter revenue was not solely due to the company's chip division, but also to the progress made by the company's mobile business.
A rise in revenue to $24.2 billion was achieved by the company's mobile division, which can be attributed to strong sales of the company's mass-market lineup as well as the recent introduction of flagship models such as the Galaxy Z Fold 3 and Galaxy Z Flip 3.
As the company acknowledged, increased marketing investments for its foldables had a negative impact on the division's overall profits, these figures could have been even higher than they were.
Global smartphone market shrank by 6%
With a 23 percent share of the smartphone market in the third quarter, according to Canalys, Samsung was the leading vendor in the industry. Despite a 6 percent decline in global smartphone shipments, this is still the case.
Samsung's mobile chipset division provides the company with a competitive advantage at a time when other vendors are struggling to meet device demand due to supply shortages of components.
Apple has risen from second place to take a 15 percent market share, thanks to strong demand for the iPhone 13 in its first few days on the market. Xiaomi came in third place with a 14 percent market share, followed by Vivo and OPPO, both of which had a 10 percent market share, in that order.
