Samsung Warns of Slowing PC and Mobile Demand Despite Nearing $60 Billion USD in Q2 Revenue
Recording a 12% increase in profits.
Samsung has recorded yet another positive financial quarter in Q2 of 2022 but warns that demand for both PCs and mobile devices is waning.
Over the quarter, the company brought in a revenue of roughly $59.4 billion USD, with operating profits rising by 12% to $10.8 billion USD. Its semiconductor division Device Solutions performed the best, achieving a historical high in quarterly revenue for the second quarter in a row, contributing $21.9 billion USD to the South Korean tech giant.
Despite the stellar results, Samsung warns that demand for chips in consumer products is slowing down, with the Q2 results driven heavily by server chip demand. Both NAND and DRAM shipments were below guidance, and the company mainly attributes this to the “widening impacts of macro issues.” Making the situation worse, it believes there’s even a chance the waning demand will affect its enterprise business as well.
Its Mobile eXperience division was also hit by slowing demands. Earnings declined over the quarter compared to the same time last year and Samsung says it’s because of “geopolitical issues and concerns over inflation on top of continued weak seasonality.” Increased production costs and logistics have also lowered profit margins.
In other related news, Amazon Prime is hiking up annual prices by as much as 43% in Europe.
