After posting a 23% jump in its quarterly operating profit, Samsung Electronics (Samsung) expects a gradual recovery in demand for mobile and consumer electronics for the second half of 2020. This ,despite the uncertainty that the COVID-19 pandemic brings.
The Korean technology manufacturer reported a quarterly operating profit which rose to 26% from the previous quarter and 23% from a year earlier. It attributed the surge to “the firm demand for memory chips and appliances, as well as a one-off gain at its Display Panel Business.”
The pandemic has slowed down the global economy but Samsung remains optimistic looking at its Mobile Communications Business and Consumer Electronics Division, which both reported higher earnings.
Lockdowns that forced people to stay at home may have contributed to the sales of appliances including premium TVs and air conditioners. The Mobile Communications Business reported solid profitability on marketing cost reductions and other cost optimizations, despite weaker sales of smartphones.
Samsung is also tapping on its Memory Business for growth as it “expects demand for mobile and graphic memory to recover driven by new smartphones and game consoles. It will focus on the flexible and timely management of product mix and investment to meet changing demand for each application.”
For system semiconductors, Samsung said it will focus on expanding sales of key products such as high-resolution sensors and 5G system-on-chips (SoCs).