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Samsung Electronics’ operating profit increased by 26% in the last quarter
In the period from October to December inclusive, Samsung Electronics managed to increase operating income by 25.7% to $ 8.2 billion YoY, revenue grew by a moderate 1.9%. Memory prices will return to growth this year, analysts say, so they expect Samsung to improve financial performance.
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Samsung performed slightly worse than market expectations last quarter, as RAM prices were low and the South Korean currency strengthened against the US dollar. In the coming year, it is expected that prices for RAM will start to rise in the first quarter, and solid-state memory chips will start to rise in the third quarter.
In the last quarter, demand for memory in the PC segment and in the smartphone market behaved better than analysts’ expectations. Experts suggest that some of the purchases in the fourth quarter were made by Samsung customers for future use in anticipation of further growth in prices for RAM. In a sequential comparison, both Samsung’s operating profit and revenue declined. This was facilitated by a decrease in demand for memory chips and increased competition in the smartphone segment. First iPhones with 5G support weakened Samsung’s position in their respective market. Samsung Electronics’ full Q4 statistics to be released at a later date.