Boosted by strong sales of memory chips and its latest Galaxy S22, Samsung recorded a $61.4 billion quarterly revenue during its first quarter.
On Wednesday, Samsung said that its revenue for the three-month period, which ended March 31 came in at 77.78 trillion won ($61.4 billion). This has an increase of nearly 19% over the same quarter last year, as per CNET report.
According to CNET, it's the Korean's electronic giant's third straight quarter of record revenue which narrowly edged out its fourth-quarter results as the record holder. The company's operating profit of 14.1 trillion won ($11.2 billion) represented an increase of 51% year over year.
Strong Sales of Galaxy S22 Helped in Revenue Growth
"Strong sales of the Galaxy S22 series since its launch in Q1 helped drive the revenue growth," according to Samsung. The Galaxy S22 Ultra with S-Pen garnered positive feedback from the existing Galaxy Note customers.
The mass-market 5G smartphones including new A-series as well as Device Ecosystem products such as tablets including the Galaxy Tab S8 and wearables have also contributed to the profit growth, as stated by the electronics' company.
Due to a weak seasonality and geopolitical uncertainties, overall market demand declined both quarter-on-quarter and year-on-year.
However, growth in both revenue and profitability is seen in MX business from the previous quarter despite the supply shortage.
Smartphone market demand is forecasted to slightly decline quarter-on-quarter in the second quarter. This is amidst continued seasonal effects with uncertainties over Covid-19 and geopolitical issues.
"The MX Business aims to secure revenue growth year-on-year and double-digit profitability by leveraging its global supply chain management (SCM) capabilities," said Samsung.
The Company will strive to maintain the strong sales of flagship smartphones given the component shortage for the Galaxy S22 series expected to improve. Samsung will do this while "actively responding to increased market demand for the mass-market 5G models."
According to Samsung, for the second half, the smartphone market is projected to continue to grow and the wearable market is likely to see a double-digit growth despite the uncertainties over prolonged COVID-19 and component shortage.
Samsung will Focus on Premium Products Amidst Continued Market Uncertainties
Samsung plans to achieve growth by continuing its focus on premium products.
The company plans to further optimize operations by establishing sales and supply plans further down in advance in response to persistent issues with raw materials and logistics,
Following the end of year peak in Q4 and along with geopolitical issues stemming from Russia, the first-quarter demand for TVs contracted quarter-on-quarter.
It also declined year-over-year, following the previous year's high baseline attributed to pent-up demand, according to Samsung.
Samsung expanded revenue and profit year-over-year by working closely with channel partners, and actively targeting high value product demand. The company's new Neo QLED line-up, upgraded with a new level of picture quality and sound, has garnered a positive response from the market, Samsung stated.
Due to increased outdoor activities and continued market uncertainties, Samsung expects TV demand to decline in the second quarter, both quarter-on-quarter and year-over-year.
While macroeconomic risks are expected to persist in the second half, Samsung will capture demand from sporting events during the peak season.
"We will also solidify its premium leadership with sales of its Neo QLED 8K and Lifestyle Screens as well as innovative products like Micro LED and Odyssey Ark," Samsung stated.
Related Article: Stressed Why Your Samsung Is Not Turning On? 7 Ways to Save Your Phone From Death!
