Info-tech

Samsung estimates Q1 profit at $5.2 billion, slightly higher than expected

Hemani Sheth Mumbai | Updated on April 07, 2020 Published on April 07, 2020

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.

Published on April 07, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.