Samsung's Q4 2021 Profits Decline Despite Record High Revenue
Its memory business has been hit by global supply chain issues.
Despite reporting record revenue for Q4 of 2021, Samsung has seen a drop in profits over the quarter.
Consolidated revenue for the period came in at $63.7 billion USD, but operating profit was just $11.5 billion USD, marking a slight decline year-over-year due to hefty bonuses given out to employees. Overall revenue for the year also reached a record high of $232.5 billion USD, with $42.9 billion USD in operating profit.
While overall performance has been exceptional, the company’s memory and display panel divisions have not done as well as expected, largely due to COVID-related supply chain issues as well as increasing material and logistics costs.
In contrast, Samsung’s mobile and consumer electronics business (Mobile eXperience) performed better than expected, with revenues increasing to $24 billion USD and $2.2 billion USD in operating profit. Sales over the quarter were strong for its high-end models such as its Galaxy S series or other foldable smartphones, while computes, tablets and wearables gained more momentum thanks to the holiday season.
Looking ahead to fiscal 2022, the tech giant expects supply chain issues to continue but nonetheless expects growth across its all three of its main business divisions.
In other related news, Apple’s latest iOS update enables Face ID with masks and adds more emojis.
