Sunday, June 7, 2020
Samsung Electronics Fares Well in Q1
Operating Profit Estimated at 6.4 Tril. Won
Samsung Electronics Fares Well in Q1
  • By Kim Eun-jin
  • April 8, 2020, 13:12
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Samsung Electronics estimates its Q1 sales and operating profit at 55 trillion won and 6.4 trillion won, respectively.

Samsung Electronics announced on April 7 that its Q1 sales and operating profit are estimated at 55 trillion won and 6.4 trillion won, respectively. The respective figures went down 8.15 percent and 10.61 percent as compared with the previous quarter but increased 4.98 percent and 2.73 percent from a year ago. The operating profit topped the estimate of the market by a margin of approximately 100 billion won.

The year-on-year improvement was led by the semiconductor business unit of the company. It is currently showing the highest share in each of the global DRAM and NAND flash markets and the prices of those products are on the increase these days. In addition, the spread of COVID-19 is leading to the expansion of contactless economy, which is expected to result in a larger demand for chips for use in servers. The foundry business unit of the company, whose major clients include Qualcomm, IBM and Baidu, contributed to the improvement, too.

On the other hand, the profit of the IT and mobile division of the company, which is in charge of smartphones, is estimated to have dropped due to sluggish smartphone sales. The operating loss of its display business unit is estimated at 600 billion won due to a decline in LCD price and a sluggish demand for mobile OLED panels.

The performance of its consumer electronics division is estimated to have deteriorated as well. According to market research firm TrendForce’s estimates, the spread of the pandemic resulted in an 8.6 percent decline in global TV shipments, 20.3 percent in laptop, 9.7 percent in monitor, 10.7 percent in smartphone and 18.1 percent in automobile in the first quarter of this year.