Samsung witnessed growth in profits in the first quarter of 2020 with approximately 3 per cent increase year-on-year, according to the earnings guidance report released by the Korean tech giant on Tuesday.

Samsung seems to be braving the impact of the pandemic well. According to the estimates, Samsung’s first-quarter revenue was approximately 55 trillion won ($44.9 billion) while its operating profit is expected to rise to 6.4 trillion won ($5.23 billion)which would be a 3 per cent increase from last year. Samsung’s operating profit in its first quarter of 2019 was 6.23 trillion won.

Samsung did not break down its earnings guidance by division or give a comment on its business performance. It will disclose further details in its the final report later in the month, the Verge reported.

Despite a dip in the smartphone segment, the company’s increased revenue can be owed to its chip sales. The Korean tech giant has witnessed a surge in memory chip sales over the past month as more people are mandated to work from home amid global shutdowns in light of the coronavirus pandemic, CNBC reported. the company’s all-important memory chip unit is likely to perform well in the short term due to the extra demand on data centres as more people shift to working from home.

Samsung Electronics Co Ltd last month had said that the Covid-19 pandemic would hurt its smartphone sales along with the sale of consumer electronics in 2020 while demand from data centres would aid its recovery with increased sales of memory chip, Reuters had reported.

The chip market makes up about half of Samsung’s operating profit, according to the report.

The supply chain for smartphone players across the globe has been hit by the pandemic ever since China, the epicentre of the outbreak, had gone on lockdown to curb the spread of the pandemic.

One of Samsung’s biggest competitors Apple, last month, had announced that it would not be meeting its revenue forecast for March.

“Our quarterly guidance issued on January 28, 2020, reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10,” the company said in an official statement.

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