The second quarter has just ended, the companies have begun to announce the preliminary results of the reporting period. Samsung Electronics, according to preliminary estimates, managed to ensure the growth of operating profit by 22,7% with a drop in revenue by 7,4%. The multidirectional dynamics was explained by the increase in memory prices in the second quarter.
Samsung posted an operating profit of $6,8 billion last quarter, up about a third more than analysts had expected, and up 22,7% year-over-year. The average increase in memory prices in the second quarter was 14%, but in June they remained at the same level compared to May. Analysts note that the main demand was for memory for server systems, although there has been some revival in the market for smartphones, TVs and automotive electronics.
Experts are cautious about making forecasts for the second half of the year, since the increase in the number of new cases of coronavirus infection in many countries does not allow counting on the imminent lifting of the self-isolation regime. Manufacturers of server systems in such conditions will stop increasing stocks of memory chips, and the lack of prerequisites for price growth does not allow us to hope for the growth of Samsung Electronics' financial performance. According to CLSA experts, demand recovery in the memory market should be expected no earlier than next year.
The specifics of the second quarter include the receipt by the Korean company of a lump sum payment from one of the major smartphone manufacturers - it is assumed that we are talking about Apple. The latter company was forced to pay Samsung more than $830 million in damages for not being able to buy back the number of smartphone displays specified in the contract. It cannot be ruled out that in connection with the preparations for the announcement of new iPhone models, Samsung's core business will benefit in the third quarter.
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Source: 3dnews.ru