Samsung's operating profit increased in the second quarter despite a slight decline in sales as a novel Corona virus continues to devastate the globe. The company benefited from a one-time profit and the demand for its processors.
The South Korean electronics giant reported Wednesday that its second-quarter operating profit for the three-month period ended June 30 was 8.1 trillion won ($ 6.8 billion), an increase of more than 22% over the same period last year . Revenue decreased 6% to 52.9 trillion won ($ 44.4 billion).
For more of it
Subscribe to the CNET Now newsletter to receive the most important stories of the day from our editors.
Analysts interviewed by Thomson Reuters expected sales of 51.4 trillion won ($ 43.1 billion).
2020 should be a strong year for the phone industry as innovations like 5G and foldable screens brought people back to shopping after a general weakness in the smartphone market. However, financial problems and concerns about COVID-19 reduced consumer demand and the number of devices that could be manufactured. Samsung mobile sales declined 18% to 19.8 trillion won in the second quarter.
In April, Samsung warned of the corona virus in its last quarterly report would "significantly" affect its operations in the coming monthsThe company expects smartphone sales to increase in the third quarter compared to the second quarter, but warned that "the uncertainties surrounding COVID-19 remain".
The company also confirmed that it plans to launch a new Galaxy Note and foldable phone at its Galaxy Unpacked event on August 5. Samsung had previously annoyed Five devices are announced Unpacked with rumors and leaks indicating that the five are a new note 20 line, New Galaxy Fold (supposedly called Z Fold 2), new Tab S7 Android Tablet, a Galaxy Watch 3 and new noise canceling earphones called Galaxy Buds Live.
Samsung sells more phones and televisions than any other vendor, but it also has a big business selling memory chips to device manufacturers around the world. In recent months, Samsung's chip business has been boosted by data centers that rely on technology to store everything we do online. Sales from the company's semiconductor business rose 13% to 18.2 trillion won.
The company said its display panel business benefited from a one-time profit given the weaker overall demand for display panels. The company has not determined the size or source of the profit, but a report earlier this month indicated that Apple may have done so paid a fine of $ 950 million for not buying enough OLED panels to fulfill the contract.
Samsung also expects demand for televisions and digital devices to increase in the second half of 2020 compared to the first half of the year as the blockage subsides and consumers release pent-up demand.
