Samsung in COVID-19 pandemic
In this COVID-19 pandemic, people are now doing their work or study from their home, and Samsung has cut down its sales for TVs and smartphones, but has increased the production of PCs, memory chips and servers because of the higher demand. In the first-quarter earnings report, Samsung has said that it wishes the COVID-19 pandemic to resume impacting the business for the rest of the year.
The result of Samsung for the first quarter of this year was matched with the guidance that it published earlier this month. The operating profit was around $5.3 billion, and the revenue fell approximately 7.6% compared with the previous quarter. It is because of the sudden drop in demand for electronics and displays.
The virus has caused more than 3 million infected cases and more than 217,000 death cases across the globe.
What did Samsung say of it?
Samsung explained that since the impact of COVID-19 pandemic through the 2nd half of this year remains so uncertain, they were planning to make flexible investments and to adjust the products mix to adapt. Since the company wishes the competition among the manufacturers to enhance as they tried to restore from this weak first half, Samsung would resume to launch its premium products – a new foldable and Note devices and expand its 5G network.
The display panel business of Samsung saw a reduction in earnings during the 1st quarter because of weak seasonality and fewer sales across China during the coronavirus shutdown.
On the other hand, Samsung hopes to see excellent performance in the memory business as online education, online shopping, remote work, streaming entertainment services resume applying more demands on the cloud providers as well as data centers. As a consequence, the company will boost up the transition to 1Z-nm DRAM and the 6th-generation V-NAND flash memory.