2Samsung Electronics reported a 12 percent increase in operating profit in the second quarter of this year due to strong demand for server chips.
In a statement issued by the world’s largest manufacturer of smartphones and memory chips said its fourth-quarter operating profit increased to 14.1 trillion won ($10.8 billion). Meanwhile, the company’s consolidated revenue increased to 77.2 trillion won ($59 billion) in the second quarter.
The memory business’ profitability improved as the company focused on meeting strong server demand through a disciplined sales strategy to achieve market demand and help maintain average selling prices.
A stronger US dollar against the Korean won bolstered the company’s operations, resulting in a 1.3 trillion won ($1 billion) increase in operating profit from the previous quarter.
Furthermore, while demand for servers is expected to remain strong, demand for computers and mobile phones is expected to fall following the boom at the height of the pandemic, when people are forced to work from home, according to Samsung.
“Due to protracted geopolitical issues and economic uncertainties, smartphone market demand is projected to remain similar year on year or is expected to show weak growth in the second half,” the company said.
