Samsung expects strong sales for the quarter from April to June, despite the challenges posed by the ongoing coronavirus pandemic.
The Korean technology titan has surpassed the estimates and expects an operating profit of 8.1 trillion won ($ 6.8 billion) for the second quarter late Monday, with official figures released later this month, an increase of 22 , 7% compared to the previous year. This is despite an expected 7.4% year-over-year decline in sales to 52 trillion won ($ 43.6 billion) for the three-month period.
How exactly did Samsung manage to post a strong quarter despite the global economic pressures caused by COVID-19?
Ironically, these measures seem to have boosted Samsung's bottom line as demand for smartphones, televisions, and home appliances fell during government-imposed locks to slow the spread of the virus, as an increase in remote work led to an increase in demand for server chips . The situation also led to the price of the chips rising as data centers asked for additional inventory in response to the recent change in job behavior.
A senior analyst at Nomura, a financial services firm, told Nikkei that Samsung's performance picked up again in mid-May, but demand for cloud-based services due to home-based orders "is likely to subside in the near future -term" as the Sales of his electronic devices, which have been hard hit in the past few months, are now recovering. Such news will be a relief for Samsung, which is currently preparing to release its highly anticipated Galaxy Note 20, as well as the Galaxy Fold 2 phone and Galaxy Watch 3.
Samsung rival Apple announced sales of $ 58.3 billion for its last quarter through March 28, compared to $ 58 billion a year earlier. Income was supported by quarterly service records (including Apple Music, Apple TV + and Apple Arcade) and wearables.
The iPhone manufacturer's quarterly earnings were $ 11.25 billion, compared to $ 11.56 billion in the same period twelve months ago.