Samsung Made Profit Despite Declining Phone Sales

Financial institutions examining Samsung's financial situation between April and June 2020 announced that the company had a revenue of 53.39 trillion won, a decrease of 5.3 percent compared to the same period of the previous year. Yonhap Infomax, the financial news arm of Yonhap News Agency, Samsung's He stated that annual operating profit is also expected to decrease by 2.3 percent to 6.44 trillion won. 

Samsung, one of the world's largest smartphone and memory chip vendors, coronavirus outbreak It already expected its revenues to fall in the second quarter of 2020 due to the impact on Europe and the US. 

Analysts examining the data in the first two weeks of June estimate that Samsung achieved sales of 50 trillion won and made a profit of 6 trillion won. Eugene Securities analyst Lee Seung-woo said: “Despite declining earnings from its smartphone business and increasing losses from its display business, Samsung from the increase in memory chip prices was able to achieve the current earnings results predicted.” he said. 

Analysts say operating profit from Samsung's chip business will be up from 4 trillion won in the first quarter to 5 trillion won in the second quarter They estimate that it has arrived. Although Samsung has made a significant profit in the chip industry, it is having a hard time in the display industry. The decline in demand for smartphones and televisions caused the company's losses in the display industry to increase. 

Stating that Samsung is not having good times in the smartphone industry, analysts say that the company's sales of the Galaxy S20 series recession because of They predict a definite earnings decline. Some observers expect Samsung's smartphone revenues in the second quarter to drop by at least 1 trillion won compared to the previous quarter.

However, signs of recovery in the global smartphone market in June may have caused Samsung revenues to be higher than expected in the second quarter. Financial Investment's analyst Kim Kyung-min predicted Samsung's smartphone sales figure in the second quarter more than 50 million units 55 million pieces announced that they upgraded.