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< Netease technology reported on July 7 that Samsung Electronics, the world's largest memory chip and smartphone manufacturer, announced its preliminary results for the second quarter of 2022 on Thursday. The company expects to report its best second quarter results in four years, supported by strong chip demand

in the performance guidance, Samsung estimated its operating profit in the second quarter to be 14 trillion won (about US $10.73 billion), an increase of 11.38% over the same period last year, but lower than the 14.45 trillion won (about US $11.56 billion) expected by analysts on average

however, this will be the highest operating profit recorded by Samsung in the second quarter since 2018, which was won12.57 trillion (about US $10.06 billion) in the same period last year

Samsung also said in a brief preliminary performance report that its revenue may increase by 21% year-on-year to 77 trillion won (about US $61.6 billion), which is basically in line with the 76.7 trillion won expected by the market

the strong demand for storage chips used in servers and data centers continued to support Samsung's outstanding performance in the second quarter. During this period, the global shipments of DRAM and NAND flash memory increased by 9% and 2% respectively over the same period last year

Samsung explained in a short statement that the reason why operating profits were lower than expected was mainly because inflation led to the decline in sales of smartphones and TVs, which in turn affected the profits brought by server customers' massive purchase of storage chips

it is estimated that Samsung shipped 61million smartphones in the second quarter, down 16% from the previous quarter. The operating profit of this business is expected to be 2.6 trillion won (about US $2.08 billion), a decrease of 600billion won (about US $480million) over the same period last year

as the conflict in Ukraine continues, inflation continues to rise, and the COVID-19 is dragging down demand and further squeezing consumer spending, analysts' forecasts for the second half of the year are more pessimistic

according to Gartner, a technology research company, global shipments of consumer devices such as mobile phones and personal computers will fall by 7.6% this year. This pessimistic outlook also makes people worry that the semiconductor industry is entering a downward cycle in the context of weak demand and excess inventory

Samsung has not broken down the performance of its business units, but it will release detailed results for the second quarter later this month. (small)