Samsung Electronics posted a record consolidated revenue for the third straight quarter of KRW 77.78 trillion and an operating profit of KRW 14.12 trillion, a 51% increase from a year earlier. The DX (Device eXperience) Division posted the highest revenue since 2013 while the DS (Device Solutions) Division reported a historical high for quarterly revenue.
The MX (Mobile eXperience) Business posted sequential increases in revenue and profitability thanks to strong sales of Galaxy S22 Ultra, positive responses to new, mass-market 5G models, and solid sales of Device Ecosystem products including tablets and watches. The MX and Networks businesses posted KRW 32.37 trillion in consolidated revenue and KRW 3.82 trillion in operating profit for the first quarter.
Overall market demand declined both quarter-on-quarter and year-on-year due to weak seasonality and geopolitical uncertainties. MX business saw growth in both revenue and profitability, however, from the previous quarter despite supply shortage. Strong sales of the Galaxy S22 series since its launch in Q1 helped drive the revenue growth, on the back of Galaxy S22 Ultra with S-Pen garnering positive feedback from the existing Galaxy Note customers. Mass-market 5G smartphones including the new A-series as well as Device Ecosystem products such as tablets including the Galaxy Tab S8 and wearables have also contributed to the profit growth.
In the second quarter, the company expects smartphone market demand to slightly decline quarter-on-quarter amid continued seasonal effect with uncertainties over Covid-19 and geopolitical issues. The MX Business aims to secure revenue growth year-on-year and double-digit profitability by leveraging its global supply chain management (SCM) capabilities. For the second half, uncertainties over prolonged COVID-19 and component shortage are likely to persist. The smartphone market, however, is projected to continue to grow and the wearable market is likely to see double-digit growth.
The MX Business will solidify its leadership in the flagship market by accelerating innovation while maximizing sales of the new foldable models and Device Ecosystem products ensuring supply of key parts and better customer experiences through collaboration with partners. The Company will also closely cooperate with the VD and DA businesses under DX division to further strengthen seamless and connected experiences across Samsung products. With these efforts, the Company will strive to achieve sales growth in 2022 and maintain solid profitability with an improved product mix and operational efficiency.