Samsung Electronics posted lower-than-expected operating income in its preliminary second-quarter results as inflation weighed on consumer demand for mobile phones and other electronic devices.
For the April-June period, the South Korean company estimated operating income of 14.1 trillion won ($10.73 billion), up 12% from the same period a year earlier but below analysts’ expectations of 14.5 trillion won.
Although its operating profit was below expectations, it was the best profit recorded in the second quarter of the year since 2018, helped by strong sales of memory chips to server customers.
Sales of the world’s largest mobile device and chip maker rose 22% year-over-year to 77.8 trillion won. The Gartner research team expects global smartphone sales to fall 7.1% this year due to inflation, the war in Ukraine and supply chain issues exacerbated by the shutdown in China due to COVID-19.
Source: El Iktisad
