Samsung Electronics reported Thursday its internet revenue grew 7.Three % year-on-year within the second quarter, with sturdy demand for reminiscence chips overcoming the impression of the coronavirus pandemic on smartphone gross sales. The world’s largest smartphone and reminiscence chip maker […]
Samsung Electronics reported Thursday its internet revenue grew 7.Three % year-on-year within the second quarter, with sturdy demand for reminiscence chips overcoming the impression of the coronavirus pandemic on smartphone gross sales.
The world’s largest smartphone and reminiscence chip maker mentioned earnings within the April-to-June interval had been KRW 5.56 trillion (roughly Rs. 34,846 crores).
Working revenue rose 23.48 % to KRW 8.15 trillion (roughly Rs. 51,070 crores), at the same time as gross sales dropped 5.6 % to KRW 52.97 trillion (roughly Rs. 3.31 lakh crores).
The agency is the flagship subsidiary of the enormous Samsung Group, by far the largest of the family-controlled conglomerates that dominate enterprise on this planet’s 12th largest financial system, and it’s essential to South Korea’s financial well being.
The figures come because the coronavirus pandemic wreaks havoc internationally financial system, with the South having entered a recession for the primary time in 17 years as exports plunged because of the outbreak.
The South is very trade-dependent and exports plunged 13.6 % year-on-year in Q2 — the sharpest decline since 1974.
However lockdowns imposed around the globe within the face of the pandemic — particularly in Europe and the US — have boosted the agency’s chip enterprise with information centres transferring to stockpile DRAM chips to satisfy surging demand for on-line actions.
“Even because the unfold of COVID-19 induced closures and slowdowns at shops and manufacturing websites around the globe, the corporate responded to challenges by way of its in depth world provide chain,” the agency mentioned in a press release.
It additionally minimised the impression of the pandemic by “strengthening on-line gross sales channels and optimising prices,” it added.
Samsung’s total turnover is equal to a fifth of South Korea’s gross home product.
Analysts mentioned they anticipate the agency’s reminiscence chips and tv companies to enhance.
Diplomatic and navy tensions between India and China might additionally play in Samsung’s favour, analysts mentioned, if Indian customers select to shun Chinese language manufacturers and go for Samsung units as an alternative.
“The expansion is more likely to drive by reminiscence chips and shows as each of those merchandise are in excessive demand resulting from heavy content material consumption throughout the lockdown,” Prachir Singh, a senior analyst at market observer Counterpoint, informed AFP.
“India is displaying a pent-up demand because the nation recovers within the post-lockdown interval.
“There may be actually an anti-China sentiment within the minds of Indian customers. Samsung is unquestionably benefiting from this.”
Samsung took 20 % of worldwide share within the smartphone market within the first quarter — forward of China’s Huawei on 17 % and Apple on 14 % — in accordance with Counterpoint.
Extra broadly, world gross sales slumped greater than 20 % year-on-year within the first quarter, their worst efficiency ever, in accordance with market tracker Gartner, because the pandemic hit client spending.
For the second half of the yr, the outlook for mobiles is “nonetheless fairly unsure as a result of whereas lockdowns in some international locations are easing, there’s a resurgence of instances in some locations,” mentioned Gloria Tsuen, a senior credit score officer at Moody’s Buyers Service.
Market competitors can also be “anticipated to accentuate as corporations attempt to make up for weak efficiency throughout the first half”, the corporate mentioned.
Including to Samsung Electronics’ challenges, its vice chairman and de facto chief Lee Jae-yong is at present being retried over a sprawling corruption scandal that would see him return to jail.
He’s not being held in custody throughout the proceedings however a responsible verdict might deprive the agency of its prime decision-maker.
Samsung Electronics shares had been up 1.69 % in early morning commerce.