(LEAD) Samsung Electronics posts record Q4 sales

SEOUL, 27 Jan. (Yonhap) — Samsung Electronics Co. said Thursday it reported operating profit of 13,866.8 billion won in the fourth quarter of last year, boosted by its semiconductor business.

The company’s operating profit rose 53.28% year-on-year to the highest level for a fourth quarter since 2017.

The company’s fourth-quarter net profit was 10.83 trillion won, up 64 percent year-on-year, according to Samsung. Revenue for this period reached 76.566.5 billion won, representing a new quarterly high and a year-on-year increase of 24.4%.

However, the company saw a 12.3% drop in operating profit in the fourth quarter compared to the third quarter of last year due to occasional expenses like employee bonuses. Sales posted a quarterly increase of 3.5%.

This good performance of the electronics giant was fueled by strong demand for electronic chips for servers, the weaker than expected decline in the prices of dynamic random access memories (DRAM) and flash memories (NAND) and the better profitability of chips manufactured under -contracting and its foundry activity.

The component shortage eased in the fourth quarter as smartphone shipments in the period were estimated at around 67 million units, corresponding to a 7% annual increase, according to analysis by Counterpoint Research.