Premium smartphones earn Samsung record profit

Samsung Electronics has earned record profits in 2021: the world’s biggest mobile phone producer saw its profits increase by 58 % to 57 billion euros in the fourth quarter. The crisis in global logistics did not stop the South Korean company from making record profits.

Substantial increase in turnover and profit

Turnover increased by nearly a quarter between October and December, to a record high of 76.57 trillion won. Sales growth was primarily driven by the sale of consumer products, such as smartphones, TVs and home appliances. The semiconductor business also performed extremely well, despite continued supply problems. Operating profit in the period referred to was 13.87 trillion won (10.3 billion euros).

For the whole of 2021, Samsung’s turnover rose to 207.8 billion euros and operating profit rose to 51.63 trillion won (38.4 billion euros), an increase of more than 43%.

With a share of almost 40 % of the total turnover, the smartphone branch remained the largest division of the group last year. In terms of profitability, however, the semiconductor activities score significantly better, The National writes.

Samsung expects the smartphone market to continue to grow in 2022 and even predicts a growth of more than 10% for wearables such as smartwatches. Nevertheless, the Korean company warns that many uncertainties remain due to the ongoing corona pandemic and component shortages.