Samsung today presented its reports for the first quarter of this year, about which we have prepared a news cycle. In this material we will study information about the company’s network and mobile business and the work of the division for the production of household appliances. In short, the company manages to maintain the first quite well and the second with difficulty.
Samsung's mobile division earned 26 trillion won ($21,29 billion) in revenue in the first quarter and made an operating profit of 2,65 trillion won ($2,17 billion). The impact of the coronavirus reduced demand in the mobile market in the first quarter compared to the fourth quarter of 2019. Thus, supplies of the company’s smartphones also decreased during the reporting period. Samsung managed to counter this decline by improving its range and increasing the share of 5G devices. For example, the average selling price of Samsung flagships has increased. Sales of the Galaxy S20 Ultra were also unexpectedly high, as were sales of the Galaxy Z Flip.
Samsung expects the smartphone market to continue to deteriorate in the second quarter. She will try to counter this by transferring part of her sales online, as well as shifting responsibility to her business partners (strengthening B2B channels). In the second half of the year, the company expects a strong increase in competition, since everyone will have to compensate for losses in the first half of the year. Samsung's response to this will be the release of new Note models, flexible smartphones and mass smartphones with 5G support.
Samsung's network business, which produces equipment for cellular operators, performed better than the previous quarter. For this, the company thanks the commercialization of 5G networks in South Korea and its equipment for cell towers. Coronavirus may reduce investment in 5G, but in the long term it will not be able to cancel the arrival of new generation networks.
Samsung's home appliance division earned 10,3 trillion won ($8,44 billion) in revenue in the first quarter and posted an operating profit of 0,45 trillion won ($370 million). Demand for televisions decreased both quarterly and year-on-year due to seasonal factors and the emerging coronavirus epidemic. However, a number of Samsung's premium household products were in demand, which supported the company's sales.
TV sales are expected to decline in the second quarter due to weakening consumer demand caused by the impact of the coronavirus, the cancellation of major global sporting events and the postponement of the Summer Olympics. For itself, Samsung sees a solution in moving sales online. In the second half of the year, the company will also focus on expanding its online offerings, and will streamline its business and look for new sales opportunities in an uncertain environment.
It is symbolic that Samsung completed its report on its work in the first quarter with the thought of future uncertainty. Somehow, at the beginning of the year, everything turned completely in the opposite direction from where the world and we, along with it, were looking. But the main thing is not to forget that in the end everything will return to normal.
Source: 3dnews.ru