Thanks to strong chip sales, Samsung surprised analysts by beating financial estimates for the Coronavirus-battered first quarter of 2020. But its smartphone business, predictably, has taken a major tumble.
Samsung’s results are preliminary, normal practice for the Korean firm. But it forecasts that it will turn a profit of $5.3 billion on revenues of $45 billion for the quarter ending March 31. (To comply with Korean regulations, those figures are the median of its estimate range for the quarter.)
Interestingly, both are about even with the results it posted a year earlier, a $5.32 billion operating profit on revenues of $44.94 billion. But those results represented a 40 percent decline year-over-year, thanks mostly to declining smartphone sales as users, at that time, had started spacing out upgrades further.
This year, Samsung’s results were helped by strong memory chip sales, which we can assume helped offset another major decline in its smartphone business; Samsung said only that it has experienced “weakness” in smartphones and TVs, and it will elaborate further when it releases its final financial figures.
Samsung is the first major tech company to report earnings since the Coronavirus pandemic hit.
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