Connect with us

International Circuit

Samsung Electronics 2Q operating profit up 23%

Samsung Electronics said on Thursday (Jul 30) it expects a gradual recovery in demand for mobile devices and consumer electronics in the second half of the year, but risks remained due to coronavirus pandemic and growing competition.

CE 2Q results and outlook

TV. Despite weaker demand due to lockdowns in some major regions, revenue improved Q-Q and Y-Y by focusing on online sales, addressing demand using our global SCM capabilities, increasing sales of premium products including QLED, ultra-large TVs, etc., as well as enhancing operational efficiency
DA: Despite sluggish global demand for home appliances, revenue improved thanks to strong sales of premium products, such as Grande AI washer/dryer and Bespoke appliances, and strong seasonality for air conditioners.

2H20 outlook. Target pent-up demand, mainly for premium products including QLED and ultra-large TVs, new Chef Collection and Bespoke appliances Focus on gaining an early foothold on demand via holiday promotions and strengthened online sales. Continue to enhance profitability by maximizing operational efficiency through means such as cost and inventory management.

IM 2Q results and outlook
Mobile. Smartphone shipments and revenue fell Q-Q due to store closures, etc. However, profitability remained strong backed by efficient cost execution—eg, via reducing marketing costs, including those for offline promotions

N/W. 5G investment at home and abroad were delayed due to COVID-19

2H20 outlook. The market is showing a gradual demand recovery, however, uncertainties related to COVID-19 linger Intense competition likely as firm’s vie to make up for a weak 1H performance. Actively address a demand recovery by launching flagship models and strengthening our mass-market lineup At the same time, continue working to improve profitability via enhanced operational efficiency and cost competitiveness Revenue to improve in 3Q on stronger smartphone sales Q-Q and an enhanced product mix via launches of flagship models, such as Note and Fold. Uncertainties related to COVID-19 are unlikely to dissipate. Despite uncertainties such as changes in 5G investment timelines by operators, continue to explore new opportunities to secure a foundation for growth.

DP 2Q results and outlook
Mobile. Revenue improved Q-Q on a one-off gain despite weaker smartphone demand mainly in developed markets (eg, the US and Europe) due to the global spread of COVID-19.

Large. TV demand declined as the market slowed due to disruptions to sporting events such as the Tokyo Olympics and Euro Cup However, a rise in the “untact” trend boosted monitor sales, slightly narrowing losses.

2H20 outlook. Amid uncertainties over a global demand recovery, we will work to improve profitability by actively responding to smartphone launches by major customers In particular, we will expand new markets, including ones for foldable and IT devices, to satisfy customer needs amid COVID-19 for diversified products with advanced features. Address customer demand without disruption until the end of the year while preparing for new large display panel business. Accelerate product development based on next-generation technologies.

Semiconductor 2Q results and outlook
Memory. Demand stayed solid from data centers and PC amid weak mobile demand as a result of the COVID-19 continuation.

DRAM. Actively addressed server/PC demand from major companies via a flexible product mix.

NAND. Profits improved backed by expanding migration to 5th generation V-NAND, etc. although bit growth was lower than the market level due to weak mobile demand and an inability to fulfill demand in certain areas.

S.LSI. Earnings declined due to weak mobile component demand from major customers.

Foundry. Earnings improved led by increasing inventory build-ups by customers.

2H20 outlook. Memory- Mobile/graphic demand to recover backed by launches of new smartphones and game consoles. Uncertainties such as increased inventory levels of server customers to remain. Flexibly manage investment plan and product mix to account for demand outlooks of each application. Based on this, strengthen technology leadership and cost competitiveness via accelerating node migration to 1Z nano DRAM and 6th generation V-NAND, among others, and toward full-scale application of EUV.S.LSI- Strive to increase SoC/CIS sales to embrace 5G expansion and trend toward advanced camera features. Foundry- Diversify applications to HPC/Consumer as well as others and continue investing in advanced node technology.

-CT Bureau

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 Communications Today

error: Content is protected !!