Samsung announced impressive results, with profits for the first quarter up more than 50% over the same period a year ago.
The South Korean IT giant generated revenue of 77.8 trillion Korean Won ($61.3 billion) and operating profit of 14.1 trillion Korean Won ($11.1 billion), approximately in line with its own prediction earlier this month.
Sales of its memory chips increased nearly 40% year over year, bringing in around 20.1 trillion won ($15.8 billion).
Strong sales of Samsung’s newest smartphone portfolio, which it said “focused on” the flagship Galaxy S22 Ultra, helped the company’s mobile sector.
In February, the models were unveiled at a high-profile event.
However, the electronics company warned that long-standing supply chain concerns will “persist,” resulting in component shortages for its products.
This year, the business said it will continue to focus on bolstering its chip and image sensor inventories.
Due to “prolonged geopolitical disputes and lockdowns in some locations,” Samsung (SSNLF) expects reduced consumer sentiment for smartphones.
According to Nicole Peng, vice president of mobility at research firm Canalys, the worldwide smartphone industry is cooling, with “an unstable business environment” in the first quarter.
She stated in a report last week that “Due to the Russia-Ukraine conflict, China’s rolling [Covid-19] lockdowns, and the danger of inflation, vendors are facing significant uncertainty. All of this was compounded by historically low seasonal demand.”
Despite this, Samsung outsold Apple in the first quarter, according to Canalys.
On Thursday morning, Samsung’s stock was down 0.5 percent in Seoul.
