Samsung Electronics expects profit decline in April-June quarter as coronavirus pandemic hits sales

Samsung Electronics Co. said Wednesday its operating profit for the first three months of 2020 rose 3.4 percent from a year earlier driven by increasing demands for computer chips

The Associated Press April 29, 2020 14:18:04 IST
Samsung Electronics expects profit decline in April-June quarter as coronavirus pandemic hits sales

Seoul: Samsung Electronics Co. said Wednesday its operating profit for the first three months of 2020 rose 3.4 percent from a year earlier driven by increasing demands for computer chips.

However, the company predicted its profit would decline in the current quarter with the coronavirus pandemic eating into global sales of smartphones, TVs and other products.

Samsung Electronics expects profit decline in AprilJune quarter as coronavirus pandemic hits sales

Representational image. Reuters.

The South Korean technology giant said it reported an operating profit of 6.4 trillion won ($5.2 billion) for the January-March quarter. The company's revenue rose 5.6 percent from a year earlier to 55.3 trillion won ($45.4 billion).

Click here to follow LIVE news and updates on stock markets

Samsung, which has dual strength in parts and finished products, has seen the demand for chips used in computers and servers increase as broadening outbreaks have force more people around the world to work from home.

However, the company said its profit will likely decline in the April-June quarter with the pandemic pushing down the sales of mobile and household devices.

Click here to follow LIVE updates on coronavirus outbreak

“Sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally,” the company said in a news release.

“Memory demand is expected to remain robust for servers and PCs as more people work from home, but it is possible the mobile market may soften. Earnings from OLED screens are likely to be weaker due to a stagnant smartphone market,” it said.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Delhi records 4,473 COVID-19 cases for first time in single day, total over 2.3 lakh; fatality rate at 2.1%
India

Delhi records 4,473 COVID-19 cases for first time in single day, total over 2.3 lakh; fatality rate at 2.1%

There has been an increase of 45 percent in the number of containment zones in the National Capital in the last 10 days

French Open 2020 organisers hoping for 5,000 fans in stands daily even as coronavirus concerns grow
Sports

French Open 2020 organisers hoping for 5,000 fans in stands daily even as coronavirus concerns grow

French Health Minister Olivier Veran said on Wednesday that a new limit of 1,000 people will be imposed at big events in big cities like Paris amid growing coronavirus concerns.

Tokyo Olympics 2020: US Open paves way for Games to be held safely, says wheelchair champion Shingo Kunieda
Sports

Tokyo Olympics 2020: US Open paves way for Games to be held safely, says wheelchair champion Shingo Kunieda

Shingo Kunieda, 24-time Grand Slam singles champion, widely considered the best player wheelchair tennis has seen, said the US Open's ability to stave off the virus was a hopeful sign for next year's postponed Games.