June 1, 2020

Samsung expects operating profit to rise 2.73% in Q1



The technology company Samsung Electronics announced on Tuesday that it expects a 2.73% year-on-year increase in its operating profit in the first quarter of 2020 thanks to an uptick in demand for chips, its main product.

In its forecast report, the South Korean company indicated that it expects an operating profit of 6.4 trillion won (about 4.845 million euros / 5.2 billion dollars) between January and March.

The data is also above what most analysts estimated, with the forecasts of many experts even pointing to the fact that Samsung would experience a slight annual decline in operating profit.

In turn, the company based in Suwon, a city south of Seoul, expects to bill around 55 trillion won (about 41.635 million euros / 44.990 million dollars), which would be 4.98% more than to the first quarter of 2019.

As usual, Samsung, the world’s largest semiconductor maker, did not disclose specific data on its three business branches or information on its estimate of net profit.

Most experts believe that the global spread of the coronavirus may have helped increase demand for data center chips at a time when many countries around the world are keeping their populations in quarantine.

On the other hand, it is estimated that sales of telephones and other electronic products of the company have surely fallen sharply precisely due to the confinements.

Samsung will publish its full results sheet later this April.

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