Samsung reported solid financial results in the quarter ending June 30 despite the negative impact of the COVID-19 pandemic. Samsung says it saw an operating profit of $4.6 billion on revenues of $44.3 billion in the quarter. The former was up 26 percent, while revenues were down 6 percent YOY.
“Even as the spread of COVID-19 caused closures and slowdowns at stores and production sites around the world, the Company responded to challenges through its extensive global supply chain, while minimizing the impact of the pandemic by strengthening online sales channels and optimizing costs,” a Samsung statement notes. “A partial recovery in global demand since May also helped offset some COVID-19 effects, resulting in higher earnings than initially expected.”
Samsung’s smartphone business delivered $17.4 billion in revenues as the firm experienced “smartphone shipment and revenue declines” due to lockdowns in North America and Europe. But it credited “efficient cost management, including reductions of marketing expenses[,] and offline promotions” in helping the business report solid profits. And it pointed to next week’s Galaxy Unpacked event, at which it will launch several new devices that it believes will lead to a quarter-over-quarter unit sales improvement, at least.
Samsung’s memory business improved to $18.3 billion in revenues thanks to a “robust demand for cloud applications” in datacenters, and despite a weak demand from mobile. Its [mobile] display business deliver $6.72 billion in revenues but “saw unfavorable business conditions persist as the global spread of COVID-19 weighed down smartphone sales globally.” Samsung’s Consumer Electronics division delivered $8.5 billion in revenues despite a softness in smart TV sales.