Samsung has warned that demand from smartphone and computer makers for chips will weaken further as consumption declines and resilient demand from server customers also adjusts amid recession fears.
While the world’s biggest maker of memory chips and smartphones posted its best April-June operating profit since 2018 on strong demand for server chips, it said its mobile business saw earnings weaken amid geopolitical issues, inflation concerns and higher components and logistics costs.
“Servers are less affected by macro issues… But if a global recession occurs, server customers will also have to adjust their inventory,” Jin-man Han, executive vice president of Samsung’s memory chip business, said in a conference call. .
“Due to the high uncertainty, we are constantly updating our forecast,” he added. Samsung will respond to the uncertainty with an easing of short-term capital spending and disciplined chip supply, Han said, without elaborating.
However, Samsung was relatively optimistic about demand for smartphones in the second half of the year, saying the supply disruptions had been resolved and demand would remain flat or even see single-digit growth.
Samsung’s operating profit rose to 14.1 trillion won ($10.8 billion) in the quarter ended June 30, from 12.57 trillion won a year earlier, from its own estimate of 14 trillion won.
The result included chip revenues of 9.98 trillion won and mobile device business profits of 2.62 trillion won. Samsung’s total revenue increased 21% to 77.2 trillion won.
The strong dollar also helped, with operating profit up about 1.3 trillion won from the previous quarter.
Source: CNN Brasil

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