Samsung has reported its earnings for Q2 2020 that ended June 30, 2020 in which the company has made revenue of 52.97 trillion won, a decrease of 5.62% YoY. Revenue rose 5.6% YoY and 4% QoQ due to reduced sales of smartphones and other devices. Operating profit rose to 8.15 trillion won, up 23.4% YoY and 26.3% QoQ. This is due to firm demand for memory chips and appliances, as well as a one-off gain at its Display Panel Business.
IM sector that includes Mobile Communications and Networks Businesses posted 20.75 trillion won consolidated revenue, down 19.7% YoY, but posted 1.95 trillion won operating profit for the quarter, up 25% YoY. Increase in operating profit is due to efficient cost management, including reductions of marketing expenses and offline promotions, despite weak smartphone shipments due to lockdowns in regions including North America and Europe and store closures due to the global impact of COVID-19.
Samsung expects smartphone sales to rise QoQ in Q3 2020 with the launch of Galaxy Note and a new foldable phone on August 5th, while seeking to expand sales of mid-tier models. The smartphone market is expected to witness intensifying competition amid a gradual recovery in demand in the second half of the year, said the company.
Investments in 5G services were delayed in both domestic and overseas markets due to the global spread of COVID-19, but Samsung said that it will continue to explore new opportunities for business expansion.