Samsung announced its plans while releasing its second quarter earnings report.
Samsung: Tech giant Samsung Electronics has released the earnings report for the second quarter, in which it has recorded a revenue growth of 20%, while the operating profit has grown 54% year-on-year. This result has been obtained despite the fact that component shortages hit the mobile division of the company. In absolute terms, the company said that it witnessed an operating profit of about $10.97 billion and approximately $55.56 billion revenue. The Galaxy maker also said that the industry-wide component shortage caused its mobile business to suffer and this was augmented by the production issues in its factories in Vietnam, some of which had to be closed due to COVID-19 outbreak.
It also said that these factors, along with weak demand due to seasonality, led to the revenue declining as compared to the previous quarter even as the company registered an year-on-year revenue growth.
The financial statements of Samsung indicate that its biggest revenue driver is the semiconductor business which contributed to over 33% of Samsung’s revenue as well as over 50% of its profits in this quarter. The company also said that the demand for memory and price increases were higher than had been previously forecast. However, the sales of mobile memory were impacted due to the same reasons that affected the smartphone segment.
While talking about what the company was looking forward to for the rest of the year, the Galaxy maker said that it would mainstream the foldable category of smartphones, thereby “solidifying” its leading position in the premium smartphone segment. The display division of the company also confirmed that an under-screen camera technology was in the works.
Notably, Samsung is set to announce the new Galaxy Z Fold 3 and Galaxy Z Flip 3 in its Galaxy Unpacked 2021 event scheduled for August 11.
While it can be expected that Z Fold 3 and Z Flip 3 would both be more durable than the current iterations, if Samsung wants to make foldable phones mainstream any time soon, it would need to increase the durability of the screen manifold. Samsung has assured that it has made these upcoming models more durable, but considering the fact that the previous models were very fragile, an upgrade would not necessarily mean top quality durable screens.
However, since the foldable phones are also in their infancy, Samsung can be given some relief for bringing in the innovation, which has the potential to take Samsung back to the leading position in innovation that it once enjoyed in the beginning of the smartphone segment before low-cost alternatives emerged in large numbers and pushed Samsung back a little. Samsung has had to practically reinvent its smartphone segment, and if the result is foldable phones, well, then nobody is complaining.