Samsung Electronics said its revenue rose 24 percent to 76.6 trillion won and net profit grew 64 percent to 10.8 trillion won.
Samsung said MX and Networks businesses posted KRW 28.95 trillion in consolidated revenue and KRW 2.66 trillion in operating profit for the fourth quarter.
Samsung said the Networks Business improved from the prior quarter as revenue grew for both domestic and global businesses. Samsung’s Networks Business aims to win new opportunities from European and other global customers.
Samsung will actively explore new business opportunities overseas including Europe, while also responding to its 5G networks expansion in South Korea. At the same time, the company will further improve its in-house 5G chip and solidify foundations for growth.
Samsung said it aims to win a bigger share of the smartphone market this year with more 5G-capable models, Reuters news report said.
Samsung posted a 53 percent rise in fourth-quarter operating profit to 13.9 trillion won ($11.6 billion). Profits at its chip business, its largest division, more than doubled from the same quarter a year ago to 8.84 trillion won.
The world’s largest memory chip and smartphone maker forecast a recovery in tech device demand. Samsung reported its best fourth-quarter profit in four years, although it cautioned about ongoing challenges from supply chain issues and COVID-19.
5G smartphones are set to account for more than half of all smartphone sales in the market in 2022, Kim Sung-koo, Vice President of mobile business, told an investor briefing.
“Our strategy in the mass tier is to actively capture demand from people seeking to replace their phones with 5G models,” Kim said.
Samsung has around 20 percent of the smartphone market, and competes against low-cost Chinese smartphone rivals like Xiaomi, OPPO and Vivo.
The South Korean tech giant was upbeat on the possibility of a turnaround in the price of DRAM chips, widely used in data centres and tech devices.
“We expect strong fundamental demand centering around servers, and solid mobile demand from expansion of 5G models,” said Han Jin-man, Executive VP of memory chip business.
“Some organizations have forecast DRAM prices could reverse in the first half,” he added, although he noted that supply issues, raw material costs and geopolitical risks remain unknown variables.
The price of DRAM chips dipped 9.5 percent in the fourth quarter from the previous quarter, TrendForce data showed, and analysts expect a further drop in the current quarter. Views are mixed on when they will rebound.
For non-memory chips, Samsung said supply was expected to remain tight due to increased take-up of 5G-capable devices, demand for high performance computing, increased outsourcing from chip design and manufacturing firms, and continued inventory demand.
The company spent 90 percent of its 2021 annual capital expenditure of 48.2 trillion won ($40.1 billion) in the chip business, but declined to give guidance for 2022.
Samsung said it will unveil its latest flagship smartphone model on Feb. 9, which analysts expect to lift mobile shipments.
