Samsung Electronics flags second-quarter profit jump on solid chip demand, one-off gains from Apple | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Wednesday
June 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
WEDNESDAY, JUNE 07, 2023
Samsung Electronics flags second-quarter profit jump on solid chip demand, one-off gains from Apple

Tech

Reuters
07 July, 2020, 12:20 pm
Last modified: 07 July, 2020, 12:22 pm

Related News

  • Samsung’s ‘Jomjomat Khushir Haat’ Eid campaign goes live with exciting offers
  • AFC Agro’s profit declines by 56% in Jul-Mar
  • Canalys Research: Samsung tops global smartphone shipment in q1 2023 with 22% market share
  • Bata Shoe profit doubles in Jan-Mar
  • Lower Horlicks sales, yet Unilever profit rises 17%

Samsung Electronics flags second-quarter profit jump on solid chip demand, one-off gains from Apple

The handset and TV business may have also fared better than expected due to lower marketing costs and as stores and factories resumed operations worldwide as countries lifted lockdowns

Reuters
07 July, 2020, 12:20 pm
Last modified: 07 July, 2020, 12:22 pm
File Photo: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea January 7, 2019. Reuters/Kim Hong-Ji
File Photo: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea January 7, 2019. Reuters/Kim Hong-Ji

Samsung Electronics Co Ltd flagged a 23% rise in second-quarter operating profit on Tuesday, beating analysts' estimates on solid chip sales to data centers catering for a work-from-home economy during the coronavirus pandemic.

The sales offset weak demand for smartphones and TVs, while one-off gains from its display business, which counts Apple Inc.as a customer, also boosted profits, the company said. It gave no further details.

The world's top memory chip and smartphone maker said operating profit was likely 8.1 trillion won ($6.8 billion) in the quarter ended June, far above the 6.4 trillion won analyst forecast by Refinitiv SmartEstimate. It would be the highest quarterly profit since the fourth quarter of 2018.

Revenue likely fell 7% to 52 trillion won from a year earlier, Samsung added, giving only limited data in a regulatory filing ahead of its full earnings figures later this month.

Work-from-home orders and growth in online learning are underpinning chip demand amid the Covid-19 pandemic and pushing up DRAM memory chip prices. U.S. DRAM supplier Micron Technology Inc (MU.O) forecast strong quarterly revenue last month.

"Chip demand was stronger than expected due to the Covid-19," said Park Sung-soon, an analyst at Cape Investment & Securities.

Analysts said the one-off display boost reflected a payment from Apple, with the U.S. smartphone maker struggling to meet agreed shipment targets as iPhone sales take a hit from the Covid-19 pandemic.

The payment was estimated at 1 trillion won, bigger than a similar 800 billion won payment a year ago, they said.

The handset and TV business may have also fared better than expected due to lower marketing costs and as stores and factories resumed operations worldwide as countries lifted lockdowns, analysts said.

"The damage from the pandemic was less severe than the market had expected," said CW Chung, Nomura head of research in Korea.

Analysts, however, warned that increases in memory chip prices may not continue in the second half of the year as data centre customers are likely to be conservative in stockpiling chips given the resurgence of Covid-19 cases in the United States and other countries

While prices jumped 14% on average in the quarter, they were flat in June versus May, data from DRAMeXchange showed.

Shares of Samsung Electronics fell 1.8%, versus a 0.4% fall in the wider market .KS11 as of 0206 GMT.

The South Korean tech giant's resilient earnings despite the pandemic came even as its leader Jay Y. Lee faces fresh legal troubles. State prosecutors are investigating Lee on suspicions of resorting to accounting fraud and stock price manipulation to win control of Samsung Group, Korea's largest conglomerate. Lee's attorneys have denied such allegations.

Samsung / profit

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Digital bank licence requires Tk125cr capital
    Digital bank licence requires Tk125cr capital
  • New income tax law to be hard on evaders, simplifies rules for businesses
    New income tax law to be hard on evaders, simplifies rules for businesses
  • RMG export income rises, raw material imports fall in Q1
    RMG export income rises, raw material imports fall in Q1

MOST VIEWED

  • Photo: Collected
    Apple to sell Vision Pro AR headset for triple Meta's top-line price
  • A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, U.S. June 14, 2016. REUTERS/Lucy Nicholson/File Photo
    Microsoft to pay $20 mln to settle US charges for violating children's privacy
  • British Prime Minister Rishi Sunak walks outside Number 10 Downing Street in London, Britain, November 2, 2022. REUTERS/John Sibley
    What's on Rishi Sunak's to-do list? A global artificial intelligence watchdog
  • Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration
    Elon Musk's Twitter now worth $15 billion, a third of the price tag
  • Twitter's head of trust and safety says she has resigned
    Twitter's head of trust and safety says she has resigned
  • Starlink logo is seen on a smartphone in front of displayed Ukrainian flag in this illustration taken February 27, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
    SpaceX's Starlink wins Pentagon contract for satellite services to Ukraine

Related News

  • Samsung’s ‘Jomjomat Khushir Haat’ Eid campaign goes live with exciting offers
  • AFC Agro’s profit declines by 56% in Jul-Mar
  • Canalys Research: Samsung tops global smartphone shipment in q1 2023 with 22% market share
  • Bata Shoe profit doubles in Jan-Mar
  • Lower Horlicks sales, yet Unilever profit rises 17%

Features

TBS Illustration

From graphic eyes to glass skin: 5 viral beauty trends of 2023

10h | Mode
Photo: Courtesy

Stride: Embracing affordable, inclusive, and heritage-inspired fashion

14h | Mode
Seba Prokashoni after QaziDa

Seba Prokashoni after QaziDa

17h | Panorama
Illustration: TBS

How to retain brains in the country

16h | Panorama

More Videos from TBS

Imran fears re-arrest

Imran fears re-arrest

6h | TBS World
Zlatan Ibrahimovic retires from football

Zlatan Ibrahimovic retires from football

9h | TBS SPORTS
Controversial referee Lahoz departs after receiving a guard of honour

Controversial referee Lahoz departs after receiving a guard of honour

9h | TBS SPORTS
What will happen if Payra thermal power plant is closed?

What will happen if Payra thermal power plant is closed?

9h | TBS Stories

Most Read

1
bKash denied permission to pay $4.10 lakh for Argentina football partnership
Banking

bKash denied permission to pay $4.10 lakh for Argentina football partnership

2
Photo: Noor-A-Alam/TBS
Splash

The Night Dhaka did NOT vibe with Anuv Jain

3
Boeing offers Biman its latest 787-10 Dreamliner
Bangladesh

Boeing offers Biman its latest 787-10 Dreamliner

4
Country's first floating solar power plant connected to national grid
Energy

Country's first floating solar power plant connected to national grid

5
Photo: TBS
Environment

Green space in Dhaka North declines 66% in 3 decades: Study

6
Photo: TBS
Energy

2nd unit of Payra power plant to shut down over coal shortage

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]