Samsung's operating profit grows 58% in Q3 2020

According to a new earnings guidance published by the company for the third quarter of 2020, its consolidated sales are likely to amount to 66 trillion Korean won (about $57 billion), while operating profit is likely to amount to 12.3 trillion Korean won (about $10.63 billion). These financial results are not final and Samsung is expected to announce final numbers by the end of October.

The reason for such an increase in the company's profit was the higher sales of smartphones, home appliances, and semiconductor chips. Among other things, strong sales of the Galaxy A series and the Galaxy Note 20 series have played an important role in generating the company's high profit. It is also believed that it was the pent-up demand caused by the economic recovery in different countries of the world after the lockdown that served the high sales of home appliances and TVs. Compared to the same period last year, Samsung's operating profit has risen a colossal 58% from 7.78 trillion Korean won (about $6.73 billion), while sales have risen 6.45% from 62 trillion Korean won (about $53.61 billion). Samsung's sales and operating profit in the second quarter of 2020 totaled 52.97 trillion Korean won and 8.15 trillion Korean won, respectively.

Samsung appears to have reduced its offline marketing costs as well. Despite the drop in memory chip prices, Samsung is thought to have succeeded in this area thanks to higher server demand. Since its clients introduced new products in the third quarter of 2020, Samsung's display and logic chip business is also going to be successful.

0Comments

  • 179
  • 08.10.2020

to post a comment.

To Top
GDPR