Samsung, a Korean-based technology company, reported $63.1 billion in revenue in the third quarter of 2021, its highest quarterly result since the third quarter of 2018.
Samsung’s significant revenue figures for Q3 2021 represent a 10% increase over the revenue recorded in the same period last year.
According to the company’s report, it also recorded an operating profit of $13.5 billion, which is a 26 per cent increase over the previous quarter.
This impressive growth comes despite a global shortage of chips worldwide that has caused major technology brands, including Apple, to have potential production issues thereby slashing manufacturing targets.
Samsung claims it is able to continue doing business as usual despite the global shortage of semiconductor components by flexibly adjusting its product mix.
The increasing demand for chips
Apart from being a manufacturer of smartphones and electronics products, Samsung also makes memory chips and processors that go into everything from servers to mobile phones.
The current spike in prices of memory chips has resulted in a significant growth in the company’s profits even if rising costs for raw materials and logistics cut into the profits of its consumer electronics division.
Despite the pandemic affecting many other companies, the tech giant’s semiconductor division was able to post $22.6 billion in revenue. Profits were also up by $8.5 billion, nearly doubling from the $4.8 billion recorded last year.
The Galaxy Z Fold 3 and Galaxy Z Flip 3
The record-breaking revenue figures recorded in the third- quarter were not solely triggered by its chips division but also due to the progress made by Samsung’s mobile division.
Thanks to strong sales in the company’s mass-market lineup and the recent introduction of its flagship models like the Galaxy Z Fold 3 and Galaxy Z Flip 3, the company recorded an improvement in its mobile division with $24.2 billion recorded in revenue.
These figures could have been higher as the company admitted that the bigger marketing investments for its foldables affected the division’s total profits.
Global smartphone market shrank by 6%
According to a report by Canalys, Samsung was the leading smartphone vendor with a 23% share for the third quarter. This is even though global smartphone shipments fell 6%.
Samsung’s mobile chipset division puts it at a comparative advantage as other vendors are struggling to meet the demand for devices amid component shortages.
“The smartphone industry is striving to maximize production of devices as best it can. On the supply side, chipset manufacturers are increasing prices to disincentivize over-ordering, in an attempt to close the gap between demand and supply. But despite this, shortages will not ease until well into 2022. As a result of this, as well as the high cost of global freight, smartphone brands have reluctantly pushed up device retail pricing. ”Canalys Principal Analyst, Ben Stanto
Thanks to high early demand for the iPhone 13, Apple recovered from second place with a 15% market share. Xiaomi finished third with a 14% market share, while Vivo and OPPO rounded out the top five with a 10% market share each.
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