Samsung Q2 report reveals improved profit from chips and phones despite COVID-19

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Earlier today we learned Huawei was the leading smartphone manufacturer in Q2, while LG Mobile keeps losing ground. Samsung also released its full financial report for Q2 2020, and despite dropping from the lead in the smartphone race the overall numbers are good. Profit increased both sequentially and on yearly basisdue to strong demand for memory chips, while the Mobile business also reported improved operating profit despite 20% decline in revenue.

The IT & Mobile Communications Division posted KRW20.75 trillion ($17.3 billion) in consolidated revenue and KRW1.95 trillion ($1.63 billion) in operating profit between April and June, a 25% increase from Q2 2019.

Lockdown in key markets like North America and Europe caused a demand decrease QoQ, but due to efficient cost management, reduction of marketing expenses and offline promotions, Samsung managed to stay afloat and even have something positive to show for it.

The next three months should see even better results with the upcoming Galaxy Unpacked event on August 5 about to bring the H2 flagships. Samsung expects the overall market to show a gradual recovery, but uncertainties will continue disrupt demand.

Investments in the Networks Business of Samsung have been delayed both at home and overseas markets. There are still some uncertainties about the 5G services, and Samsung says it will “continue to explore new opportunities for business expansion”, meaning it will try to do its best, but don’t hope for the best.

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