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Samsung Electronics' Q2 operating profits rose 23.48% y/y to US$ 6.8 bil. despite COVID-19 Updated: 2020-07-30 14:19:26 KST

Samsung Electronics' operating profit for the second quarter of 2020 amounted to around six.eight billion U.S. dollars.
That is the largest figure since the final quarter of 2018.
The South Korean tech giant said that while its total sales were down some 5.6 percent on-year amid COVID-19, its operating profits were up 23-and-a-half percent.
Samsung says this was largely driven by the increased profitability of memory chips and displays, along with high demand for the IT products people have been using during lockdowns.
According to Samsung, the operating profits from semiconductors made up around 67% of the total profits.
Also, sales of mobile phones and home appliances, which were expected to see a huge drop in demand, had better sales than expected following the resumption of production and increased shipments.
The operating profits for mobile phones came to around 1.6 billion U.S. dollars, a 25% increase from the same period last year.
For the latter half of 2020, Samsung says it expects demand to rebound on products like smartphones while seeing firm demand for memory chips with the release of new mobile and game console models.
But there are some analysts who think global demand for semiconductors could decline in the following quarter.

"As companies have already bought sufficient stock of semiconductors in the first half of the year, they will have to reduce purchases in the following quarters. This could lead to decline in sales of semiconductors in the third quarter."

The expert added however that the recovery of demand in other products will buffer the total earnings of the company.
Samsung Electronics aims to improve earnings in the following quarter by cutting production costs and improving efficiency. However, it says the pandemic remains a constant source of uncertainty.
Kim Sung-min, Arirang News
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