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Last updated: May 6th, 2020 at 06:20 UTC+02:00
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Samsung SDI is a Samsung affiliate company that develops batteries for smartphones, laptops, wearables, and electric vehicles. The company said that a drop in sales was caused due to the COVID-19 crisis and “seasonality“. It expects its battery business to start recovering in the second half of 2020 due to an expected pickup in demand for electric vehicle batteries, energy storage systems, and electrical tools.
Its small-sized polymer battery business, which accounts for nearly 30 percent of its sales, is likely to suffer due to the sluggish smartphone market. The company said that it would try to make up for those losses by increasing the sales of micro-sized batteries for wireless earphones (like the Galaxy Buds+) whose demand is exploding.
The South Korean firm also makes display materials such as polarizers for LCD panels and semi-materials for server DRAM chips. Samsung SDI mentioned in its quarterly report that it expects the demand for display materials to drop and the market for server DRAM materials to grow in the next quarter.
Samsung SDI reported revenue of KRW 2.39 trillion ($1.95 billion), an operating profit of KRW 54 billion ($44 million), and net profit of KRW 0.72 billion ($0.59 million). Although its revenue rose 4 percent from Q1 2019's KRW 2.30 trillion ($1.88 billion) and beat analysts' estimates, its operating profit plunged by 55 percent from KRW 118.8 billion ($97 million) in the same quarter.
Asif is a computer engineer turned technology journalist. He has been using Samsung phones since 2004, and his current smartphone is the Galaxy S21 Ultra. He loves headphones, mechanical keyboards, and PC hardware. When not writing about technology, he likes watching crime and science fiction movies and TV shows.
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