Business

Samsung does well even in pandemic, posts 58% higher operating profit for Q3 2020

Samsung has just released its earnings guidance for the third quarter of 2020. According to its own expectations, the company will likely post consolidated sales of KRW 66 trillion (around $57 billion) and an operating profit of KRW 12.3 trillion (around $10.63 billion). However, these are not the final numbers, and the South Korean firm will post final results by the end of this month.

The company’s earnings beat market expectations due to higher sales of home appliances, semiconductor chips, and smartphones. Compared to the numbers from a year earlier, Samsung’s operating profit has jumped a whopping 58% from KRW 7.78 trillion (around $6.73 billion), while sales have jumped 6.45% from KRW 62 trillion (around $53.61 billion). The company’s sales and operating profit in Q2 2020 were KRW 52.97 trillion and KRW 8.15 trillion, respectively.

While Samsung Electronics did not post the detailed breakdown of its earnings, it is being expected that the company’s smartphone business did well due to solid sales of its Galaxy A series of mid-range smartphones and the Galaxy Note 20 series. Even its home appliances and TV business appear to have done well due to pent-up demand in various countries worldwide as economies started opening up after the lockdown period.

The South Korean tech giant also seems to have cut costs in offline marketing due to the pandemic, resulting in higher profits. Despite a fall in memory chip prices, Samsung is expected to have done well in the segment due to higher demand for servers. Its display and logic chip businesses are expected to have done well as its clients launched new products in Q3 2020.

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