Skip to main content
https://www.highperformancecpmgate.com/rgeesizw1?key=a9d7b2ab045c91688419e8e18a006621

Samsung expects COVID-19 to hurt smartphone and TV sales, but increase demand for memory

In its first-quarter earnings report today, Samsung said it expects the COVID-19 pandemic to continue impacting its business for the rest of the year, cutting into sales for smartphones and TVs, but increasing demand for PCs, servers and memory chips as people continue to work or study from home.

Samsung’s results for the first-quarter of 2020 was in line with the guidance it released earlier this month. Operating profit was 6.45 trillion Korean won (about $5.3 billion). Revenue fell about 7.6% from the previous quarter to 55.33 trillion won, due to a seasonal drop in demand for displays and consumer electronics, and the impact of the pandemic.

The COVID-19 pandemic has caused more than 3 million confirmed cases around the world and more than 217,000 deaths, and resulted in shelter-in-place orders in countries around the world and a global recession.

Samsung said that because the pandemic’s impact through the second half of 2020 remains uncertain, it plans to make flexible investments and adjust its product mix to adapt. Because it expects competition among manufacturers to increase as they try to recover from a weak first half, Samsung said it will continue to launch premium products like a new foldable and Note devices, and expand 5G to more mass-market smartphones.

Samsung’s display panel business saw a decline in earnings during the first quarter due to weak seasonality and lower sales in China during COVID-19 shutdowns, and it expects demand to continue being impacted by the pandemic and postponement of major sporting events like the Summer Olympics.

On the other hand, Samsung expects to see solid performance in its memory business as remote work, online education, online shopping and streaming entertainment services continue putting more demands on cloud providers and data centers. As a result, Samsung will speed up its transition to 1Z-nm DRAM and 6th-generation V-NAND flash memory.

Samsung also said it plans to offset store and plant closures around the world through flexible supply networks, improving its online sales capabilities, and tailoring promotions and logistics for different market.

Comments

Post a Comment

Popular posts from this blog

Uber co-founder Garrett Camp steps back from board director role

Uber co-founder Garrett Camp is relinquishing his role as a board director and switching to board observer — where he says he’ll focus on product strategy for the ride hailing giant. Camp made the announcement in a short Medium post in which he writes of his decade at Uber: “I’ve learned a lot, and realized that I’m most helpful when focused on product strategy & design, and this is where I’d like to focus going forward.” “I will continue to work with Dara [Khosrowshahi, Uber CEO] and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale,” he adds. “We have a strong and diverse team in place, and I’m confident everyone will navigate well during these turbulent times.” The Canadian billionaire entrepreneur signs off by saying he’s looking forward to helping Uber “brainstorm the next big idea”. Camp hasn’t been short of ideas over his career in tech. He’s the co-founder of the web 2.0 recommendatio...
Post a Comment
Read more

Leading VCs discuss how COVID-19 has impacted the world of digital health

In December 2019, Extra Crunch spoke to a group of investors leading the charge in health tech to discuss where they saw the most opportunity in the space leading into 2020 . At the time, respondents highlighted startups in digital therapeutics, telehealth and mental health that were improving medical practitioner efficiency or streamlining the distribution of care, amongst a variety of other digital health markets that were garnering the most attention. Where top VCs are investing in digital health In the months since, the COVID-19 crisis has debilitated national healthcare systems and the global economy. Weaknesses in healthcare systems have become clearer than ever, while startups and capital providers have struggled to operate while wide swaths of the market effectively shut down. Given significant volatility and the rapid changes seen in the worlds of healthcare, venture and startups broadly, we wanted to understand which inefficiencies might have been brought to light, w...
Post a Comment
Read more

News-reading app Flipboard expands local coverage, including coronavirus updates, to 12 more U.S. metros

Earlier this year, personalized news aggregation app Flipboard expanded into local news . The feature brought local news, sports, real estate, weather, transportation news and more to 23 cities across the U.S. Today, Flipboard is bringing local news to 12 more U.S. metros and is adding critical coronavirus local coverage to all of the 35 supported locales. The 12 new metros include the following:  Baltimore, Charlotte, Cleveland, Detroit, Indianapolis, Nashville, Pittsburgh, Orlando, Raleigh, Salt Lake City, St. Louis, and Tampa Bay. They join the 23 cities that were already supported:  Atlanta, Austin, Boston, Chicago, Dallas, Denver, Houston, Las Vegas, Los Angeles, Miami, Minneapolis-St. Paul, New Orleans, New York City, Philadelphia, Phoenix, Portland, Sacramento, San Diego, San Francisco Bay Area, Seattle, Toronto, Vancouver and Washington, D.C. To offer local news in its app, Flipboard works with area partners, big and small, like The Plain Dealer’s Cleveland.com , ...
Post a Comment
Read more