In the second quarter, Samsung reported a 73.4 percent increase in profit.
Samsung Electronics’ net profits increased by more than 70% in the second quarter, mainly to increasing chip prices and continued pandemic-driven demand, according to the South Korean tech giant.
In the April to June period, the world’s largest smartphone maker reported a 73.4 percent increase in net earnings to 9.6 trillion won ($8.4 billion), according to a regulatory filing.
In the second quarter, operating profit grew by 54.3 percent to 12.6 trillion won, up from 8.1 trillion won a year earlier.
It was slightly more than Samsung’s initial projection of 12.5 trillion won.
The business ascribed the boost to favorable market circumstances for memory chips, stating that “memory shipments exceeded earlier forecasts and price increases were higher than expected,” resulting in a “significant gain in earnings.”
The coronavirus has wrecked havoc on the global economy, resulting in months of lockdowns and travel bans around the world.
However, several tech businesses have benefited from the pandemic, which has killed over four million people globally.
Working from home due to the Coronavirus has raised demand for Samsung memory chips, as well as home equipment like TVs and washing machines.
The good results come despite Samsung’s smartphone division profitability declining quarter over quarter due to supply chain issues that have impacted production at numerous worldwide companies.
The company forecasted a positive outlook for the rest of the year, predicting favorable market conditions and continued demand for memory chips in the server and mobile industries.
However, it warned that the pandemic’s uncertainty would continue into the second half, stating that “further interruptions in component supply and uncertainties… are expected to endure.”
Samsung Electronics is the flagship company of the Samsung Group, which is by far the largest of the chaebols, or family-controlled conglomerates, that dominates business in South Korea, the world’s 12th largest economy.
The conglomerate’s total revenue is equal to one-fifth of the country’s GDP.