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Samsung Reports 53% Jump In Profit Despite Supply Chain Woes

Samsung Reports 53% Jump In Profit Despite Supply Chain Woes

South Korea’s tech giant Samsung Electronics said on Thursday its operating profit rose 53.3 percent in the fourth quarter of 2021. The record sales helped overcome pandemic-induced supply chain challenges.

One of the world’s biggest smartphone makers said its operating profit rose to 13.87 trillion won ($11.55 billion) for the October-December period last year.

The registered profit came up from the nine trillion won in the same quarter the year before.

Samsung had its highest annual sales of 279.6 trillion won in 2021 thanks to high memory chip prices and strong consumer demand.

Also, their competitive products contributed to the high sales despite uncertainty during the pandemic.

While the Covid-19 pandemic has caused havoc on the global economy, it has helped many tech companies thrive.

This is because the pandemic-driven work from home has boosted demand for devices powered by Samsung’s chips.

‘’In the Memory Business, demand is expected to grow as enterprises ramp up IT investments while the company will expand the supply of high-performance products,’’ Samsung said.

In November, Samsung announced a new microchip factory in Texas, a $17 billion investment. They expect the plant to be operational by the end of 2024.

Additionally, Samsung said it expected the smartphone and premium television market to grow in the third year of the pandemic.

Though, it anticipated sustained ‘’uncertainties triggered by Covid-19 and supply and logistics issues’’.

These recorded sales last year, however, came as Lee Jae-yong, the firm’s vice-chairman returned to management.

He came back on parole release from prison in August 2021 after spending there two and a half years over bribery, embezzlement, and other offenses.

His return to management has eased concerns over decision-making at Samsung.

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