Samsung released its financial report for the period between July and September 2020. The company ended this period with 66.96 trillion won revenue and 12.35 trillion won operating profit. The amount in question represents a quarterly income record for the South Korean electronics giant. In the statement made by Samsung, it was stated that the increase in customer demand after the COVID-19 outbreak was effective.
The company’s statement includes the following statements: “Although the COVID-19 pandemic continues around the world, there has been a significant increase in customer demand thanks to the reopening of key economies. As a company, we were able to respond aggressively to this situation with flexible global supply chain management. Thus, we achieved our highest quarterly income. ”
In Samsung’s statement, it was stated that the increase in demand for smartphones is one of the main factors of revenue growth. The company’s operating profit increased by 59 percent compared to the previous year; In this case, it was stated that both memory chip and consumer products sales were effective. It is worth noting that the mass order from Huawei, following the US sanctions, played an important role in the increase in memory chip sales.
However, the company did not neglect to warn of the possible decrease in profits in the next quarter. Stating that the demand for memory chips may decrease, the South Korean technology giant predicts toughen competition in the smartphone market. At this point, Samsung released flagship phones such as the Galaxy Note 20 series and Galaxy Z Fold 2 in the last quarter; It is worth noting that Apple’s iPhone 12 series has dropped to the current quarter.
Samsung plans to focus a little more on foldable phones next year and diversify its flagship device portfolio. On the one hand, the company is preparing to bring 5G to the mainstream.