Samsung’s Profit Pops, Proving USD 2,000 Foldable Smartphone Is Not A Gimmick

8th October 2021
Samsung’s Profit Pops, Proving USD 2,000 Foldable Smartphone Is Not A Gimmick

Samsung has reported a rise in its operating profit buoyed by strong demand for its foldable smartphone and rising semiconductor prices.

The Korean tech giant reported a 25% rise in operating profit to KRW 15.8 trillion (USD 13.2 billion) for Q3 2021. Analysts had targeted KRW 15.75 trillion.

Sales came in slightly under expectations at KRW 73 trillion vs. KRW 73.5 trillion.

Prices for Samsung’s foldable smartphone range, the Z series, can reach almost USD 2,000. Upon its seminal launch in 2019, the Galaxy Fold drew heavy criticism after reviewers tore off what was thought to be a screen protector, which was in fact the actual screen.

Foldable smartphones have since been met with mixed reactions, with many disregarding the concept as a novelty or gimmick, worsened with a hefty price tag.

However, Samsung has ramped up resources on its Z-series and has even introduced its first sub USD 1,000 foldable handset. Selling 1 million new foldable phones in Korea, the Z-series has the third-fastest sales pace after Samsung’s Note 10 and Galaxy S8.

Samsung remains the #1 smartphone producer in the world with a market share of 18%. Xiaomi, which overtook Apple this year, sits in second place at 16%. Apple is third with 15%.

Samsung is also known for producing memory chips, and the current global semiconductor shortage has resulted in a surge in semiconductor prices.

“DRAM operating profit could climb due to sequential bit growth of 3-5% and also price rises in 3Q. NAND may also drive strong profit growth in 3Q due to a 10-15% sequential rise in bit shipments with a price increase of 5-9%. The chip shortage may help operating profit for the foundry business climb in 3Q. New foldable smartphones may fuel sales growth in the mobile division”, BI analysts Masahiro Wakasugi and Anthea Lai said.

Image credit: Onur Binay on Unsplash

Written by Bread News Team
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