Thanks to solid chip demand in the corona crisis, electronics giant Samsung expects a significantly higher operating profit in the second quarter of 2020.
The profit from the core businesses will increase by 22.7 percent year-on-year to 8.1 trillion won (about 6 billion euros), the South Korean company announced on Tuesday in its earnings outlook for the months of April to June. The numbers were thus far above market expectations. Samsung is the market leader in memory chips, smartphones and televisions.
Samsung anticipates a 7.3 percent drop in sales to 52 trillion won. As usual, the group will only provide more precise business figures at a later date.
The company continues to benefit from increasing Internet traffic in the Covid 19 pandemic. This has driven the demand for memory chips for servers and PCs since the beginning of the crisis, as more people work from home. The prices for memory chips were also pushed up. In contrast, Samsung had recently felt the negative consequences of the pandemic, particularly in the business with smartphones and consumer electronics.
According to the company, the profit estimates included special revenue in the display business. Samsung gave no details. But analysts suggested, according to the national news agency Yonhap, that it was about 900 billion won in compensation payments, among other things, made by customers like Apple because they bought fewer displays than they had promised.
- Odds_4: © Sergey Nivens – stock.adobe.com