China-Taiwan row to worsen global computer chip shortage

Loading Article...

For the best experience, please enable JavaScript in your browser settings.

Head of the Consumer Electronics Division at Samsung Electronics East Africa Samuel Odhiambo. [Peter Theuri, Standard]

Cut spending

This is as customers cut spending on non-essential goods and services.

"Any time around elections, we see a decline in sales because people have generally cut down on spending. We hope the elections will be peaceful and the market returns to normal," said Mr Odhiambo.

Samsung, South Korea's tech behemoth, posted its highest revenue last year on solid global demand for semiconductors.

Consolidated revenue gained 18.1 per cent over the year to reach a new high of 279.6 trillion won (Sh25.4 trillion) in 2021.

The company's earnings were boosted by strong demand for server memory chips and higher profit margins in its chip contract manufacturing business.

"Samsung is well placed to profit from the record-breaking demand for PCs and electronics," technology analyst Sam Reynolds told the BBC.

He also said the firm had benefited from currency fluctuations: "The Korean won continues to depreciate, making Korea's exports more attractive on the global market."

The company has recently launched high-end gadgets such as The Samsung 8k Neo QLED TV 85 inch, which over Sh1 million.

Mr Odhiambo says these products are mainly bought by corporates for use in boardrooms, entertainment facilities, and wealthy individuals.