In its latest earnings release, Samsung confirmed that it will release new foldable smartphones soon and attempt to make the category “mainstream.” It also showed that it doesn’t need mobile to make money, as it boosted earnings by 20 percent to 63.67 trillion won ($55.56 billion) and saw an operating profit of 12.57 trillion won ($11 billion). That’s even though its mobile division saw revenue fall over the previous quarter due to component shortages and COVID-related factory issues. As you might expect, given the current need, Samsung’s chip business dominated its earnings this quarter, accounting for more than a third of total revenue and over half its profits.
Price increases helped that in categories like memory and display panels. The company’s consumer electronics division also saw growth thanks to premium TV sales and appliances. While the mobile division fell off due to weaker seasonal demand, a component shortage, and COVID-related closures at its Vietnam factories, the company did make some interesting comments about the business. It said it would “solidify its leadership in the premium [mobile] statement by mainstreaming the foldable category” — meaning we might see cheaper foldable phones shortly.