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Samsung profits from memory recovery but predicts challenges software update ahead
(Image credit: Samsung)

Samsung has software update warned investors software update that software update the software update ongoing uncertainty surrounding the coronavirus crisis software update will likely impact profits as software update sales software update of consumer electronics decline.

The software update warning slight took software update the gloss off of software update positive Q1 software update figures. software update Samsung operating profits rose by 3 per cent software update to 6.4 software update trillion software update won (?4.3bn) software update as software update the market for memory software update chips software update finally started to show signs of software update life. The profits were achieved software update despite software update sales of 55.3 software update trillion software update won (?36.6bn) – a 7.6 per software update cent year-on-year decline.  

Memory chips have traditionally software update accounted for two thirds of software update Samsung’s profits, but a software update crash in the market software update had resulted in a software update number of tricky quarters.

Samsung Q1 results

A revival software update had been expected prior to software update the outbreak of software update Covid-19, but sales have been boosted by software update increased software update demand for PCs due to software update remote working software update and for servers software update as cloud software update service software update providers software update seek software update to add additional capacity.

The market for memory is expected software update to stay software update strong during software update the crisis, software update even software update accounting for a fall software update in smartphone purchases. However overall earnings software update are software update expected to fall as software update the software update full impact software update of the coronavirus takes hold.

Samsung’s software update mobile division software update performed well in Q1 software update thanks to the software update launch of new devices like the Samsung software update Galaxy S20, but sales software update are expected software update to fall software update as customers software update delay purchases and supply chains are software update affected. This software update will have a knock-on effect software update on Samsung’s components software update business. As well as being the software update world’s biggest phone manufacturer, software update the company software update is a major supplier to the software update industry.

Global software update smartphone software update sales software update have software update been hit by government restrictions software update on people’s movement software update while software update the supply chain has been software update affected software update by factory software update closures. software update Just 61.8 million devices software update were software update sold software update in February 2020, down from 99.2 million last software update year. This 38 per software update cent decline is the biggest fall software update off in smartphone software update market history.

“In the second half, uncertainties driven software update by COVID-19 will persist as software update the duration software update and software update impact software update of the pandemic software update remain unknown,” said software update Samsung. “The company plans to focus software update on optimizing resource allocation in software update the short term, while software update continuing to strengthen software update its technology leadership and develop software update innovative set products.”

Ahead of software update what software update could be an unusual second half of software update the year, Samsung said it software update would look to support its memory software update business software update through flexible approaches to software update investments software update and products. software update Its OLED software update display software update business, which software update will be hit by reduced demand from software update devices, will look towards software update new software update areas like foldables. Recent research software update suggests the software update market for foldable AMOLED displays software update will software update increase software update fivefold this software update year.

Meanwhile, software update the mobile software update business software update will software update press software update ahead software update with software update development of premium handsets software update and affordable 5G devices software update with the aim of taking advantage of a software update revived market software update in 2021.