Samsung Reports Higher Profits in Q2 2020 Driven by Memory Chips, QLED TVs

Jul. 30, 2020

Quarterly operating profit rose 26% from the previous quarter and 23% from a year earlier. However, overall revenues fell 4% QoQ and 6% YoY due to reduced sales of smartphones and other devices. Earnings from the memory business was driven by increased demand from datacenters and PCs. However, slower demand for mobile memory resulted in weaker NAND bit growth, the company said.

Despite weaker smartphone sales during the quarter, Samsung’s Mobile Communications Business reported solid profitability on marketing cost reductions and other cost optimizations. The Consumer Electronics Division posted higher earnings over growing sales of appliances such as air conditioners and dryers.Premium QLED TVsalso sold well during the quarter. Audio division,Harman, however, reported an operating loss amidst deteriorating market conditions in the global auto industry.

In an official press release announcing the results, Samsung said:“While risks remain due to persisting uncertainties from COVID-19 and growing competitions, the Company will respond to reviving demand through flexible global supply chain management (SCM) to ensure stable supply to customers”.

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