Electronic goods maker Samsung (NYSE:SEO) reported its second quarter earnings Friday morning. The company tallied revenues of $37.45 billion, a 4% increase from the year earlier quarter. Operating profits dipped 25% due to the company’s chip business and continued losses reported by its display panel unit. On the bright side, mobile phone sales brought in 45% more revenue YoY, and the company is projecting 15% growth in the second half of 2011. The semiconductor division reported revenues that were down 4% in the quarter, with the company’s memory IC unit down 9%. Samsung blamed slower than expected PC demand for the semiconductor lags. “Despite the challenging business environment and global economic uncertainties, we achieved continued on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,” said head of Samsung’s investor relations team Robert Yi. “Heading into the third quarter, which typically sees increased consumer demand for electronics, we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.”
Here’s what the earnings mean for competitors and related companies.
Motorola (NYSE:MMI) should get relief from the mobile sales spike in Samsung that the smart phone market is still alive and kicking, even for companies without an iPhone (NASDAQ:AAPL) or an Droid (NASDAQ:GOOG). The company reported concerns in the sales outlook in cell phones going forward in its Q2 earnings call. Micron Technology (NASDAQ:MU) should feel more skittish after Samsung’s comments, “Demand for commodity DRAM remained weak” regarding the PC market. The chip maker may be forced to adjust its outlook. Data storage device maker SanDisk (NASDAQ:SNDK) should feel better after Samsung, as the company noted, “NAND supply is forecast to be tight due to strong seasonal demand driven by smartphone and tablet sales,” likely meaning higher profit margins for suppliers.