Samsung headquarters in Seoul’s Seocho district (Image courtesy of Yonhap)
SEOUL, May 17 (Korea Bizwire) – Two companies that supply semiconductors to China have entered Samsung Electronics’ list of five top revenue sources, underscoring the growing importance of the Chinese market for the South Korean tech giant.
According to Samsung’s quarterly report disclosed on May 16, its five biggest revenue drivers in the first quarter were Apple, Deutsche Telekom, Hong Kong-based Techtronic Industries, Supreme Electronics from Taiwan, and Verizon.
Compared to the end of last year, the American electronics retailer Best Buy and semiconductor firm Qualcomm dropped off the list, replaced by the Chinese semiconductor distributor Techtronic Industries and Taiwanese supplier Supreme Electronics.
The reshuffling suggests that as Chinese smartphone sales have risen, the revenue contributions from companies supplying chips to China have also grown.
The combined sales from Samsung’s top five clients account for approximately 13% of its total revenue.
Indeed, Samsung’s export sales to China reached 28.8% in the first quarter, a slight increase from 24.8% at the end of 2022, according to the company’s regional sales breakdown.
Meanwhile, Samsung’s consolidated inventory assets in the first quarter stood at 53.3 trillion won, a 3.3% increase from 51.6 trillion won at the end of last year.
Addressing the inventory growth, a Samsung official explained, “The slight increase in the Device Solutions division’s net inventory reflects factors like inventory valuation provisions. Actual inventory levels, centered on memory chips, have decreased.”
Kevin Lee (kevinlee@koreabizwire.com)
