Samsung and Intel weather chip shortages hitting record sales
Samsung and Intel recorded another quarter of record sales in the final three months of 2021, as both companies weather the supply chain storm.
South Korean giant Samsung’s profit climbed 65.13 per cent from the previous year, reflecting the expanded sales of premium smartphones, including foldable phones, as well as TVs and home appliances.
Operating profit declined from the previous quarter due to a special bonus payment to employees, but rose from a year earlier, driven by the semiconductor businesses.
The strength in the US dollar against the Korean won offset the weakness in major emerging currencies, leading to a positive impact of approximately KRW 300 billion on operating profit compared to the previous quarter.
In 2022, amid expectations of a recovery in global IT demand, Samsung’s component businesses will increase production of advanced processes and enhance leadership in next-generation products and technology.
In the finished product businesses, the firm will strengthen the premium segment lineup and create new user experiences by enhancing connectivity and synergies between devices. However, the announcement admitted that issues associated with supply and COVID-19 were likely to persist.
Meanwhile, US chip maker Intel also reported a record quarter for its Data Center Group (DCG), which had a strong recovery in the server markets at both enterprise and governmental levels.
The company’s PC platform continued to dip in units sold due to supply chain issues, as the world grappled with supply issues.
Intel chief exec Pat Gelsinger said: “Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over US$1 billion and delivered the best quarterly and full-year revenue in the company’s history.”
Fourth quarter revenue was $1.2bn above the company’s outlook, at $19.5bn, while yearly revenue came out $74.7bn.
However, according to Tech HQ, experts estimated that Samsung Electronics did enough to surpass Intel and become the leading chip maker by revenue in 2021.