The South Korean giant will report on the results of the first quarter among the first, while we can only judge the preliminary results, but they give cause for optimism. The company's operating profit was higher than expected, and revenue also grew by 5% compared to the same period last year.
Samsung Electronics will publish more detailed financial statistics later, but for now on the expected increase in consolidated revenue by 5% to $45 billion. Operating income for the period should amount to $5,23 billion, which is 2,7% more than operating income for the same period last year. Industry experts believe that demand for server components and laptops generated by self-isolation will continue in the second quarter, but if the pandemic does not subside in the second half of the year, this factor will not be enough to compensate for the fall in Samsung's revenue from the sale of smartphones and television equipment. Memory prices will accelerate their growth in the second quarter. More than half of Samsung's operating income last year was driven by memory chip sales.
On the other hand, experts expect the negative impact of self-isolation on Samsung's business to increase in the second quarter, as the brand's consumer electronics sales will inevitably decline. Representatives of Hana Financial Investment report that this year Samsung will sell no more than 260 million smartphones, although previously it was possible to count on 300 million smartphones. The company managed to avoid a blow to production chains from the spread of coronavirus in China, but demand in end markets will be undermined by the pandemic and its economic consequences.
Source: 3dnews.ru