Overall, Samsung was able to navigate the challenges of the global coronavirus epidemic well in the second quarter of this year: although the company’s revenue declined somewhat, it was still able to increase its profits. The Korean manufacturer reported revenue of $ 44.4 billion for the period, down 5.6 percent from its Q2 2019 results. Despite revenue declines, profits were fattening, equivalent to more than $ 4.6 billion in Korean won, up 7.3 percent from the previous year’s Q2 report. This is mainly due to stable demand for memory chips, with other divisions of the company already more worn out by global outbound restrictions and store closures.
quarter, coupled with an operating profit of $ 611 million. The former represents a decrease of 9 percent year-on-year, while the latter represents an increase of 5.8 percent. Although the company said sales of consumer electronics declined in several important regions due to global outbound restrictions, the company managed to focus on online sales on its televisions during the period, and premium devices such as QLED TVs were also sold in Q2. The situation was similar for home appliances, among which the high-end models also pulled the company’s cart.
The IT & Mobile Communications division, which is responsible for mobile network devices and smartphones, among others, generated $ 17.3 billion in revenue – a painful 20 percentage decline from a year earlier. The lion’s share of the revenue, $ 16.5 billion, was brought to the kitchen by smartphones, although their sales fell noticeably during the coronavirus-affected period, thanks to those restrictions and the temporary closure of stores. At the same time, despite the seemingly severe downturn, the company was able to increase the division’s operating profit by 25 percent to $ 1.6 billion – mainly through cuts in marketing costs. Samsung expects smartphone sales to strengthen in the third quarter of this year, mainly due to the upcoming launch of the new Note and Fold models. and also compresses semiconductor manufacturing departments. The division reported revenue of more than $ 20.9 billion during the period, a 6 percent increase from the second quarter of the prior year. DS’s operating profit was $ 4.8 billion, a spectacular increase of more than 38 percent. The backbone of the division was semiconductor manufacturing, which accounted for more than $ 15.2 billion in revenue (13 percent more than a year ago), including $ 12.2 billion from memory sales to Samsung. The success was mainly driven by memories for PCs and data centers, and the transition to 5th generation V-NAND also had a positive impact on the manufacturer’s performance. For the rest of the year, the company expects a recovery in mobile component demand.
Also within the DS division, display panels generated 5.6 billion in sales, a 12 percent year-over-year decline. The segment was also hit by reduced demand for smartphone displays and more subdued demand for panels sold for TVs, although Samsung expects the situation to improve here in the second half of 2020 as well. Last but not least, Harman, who also works under the company’s wings, is worth mentioning, the $ 1.3 revenue of the department known for its sound systems is the result of a massive 39 percent decline – so here is the expected recovery in the coming quarters.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.