Samsung expects a global recovery for consumer electronics

Samsung Electronics expects a global recovery in demand for mobile devices and consumer electronics in the second half after an increase in online activity during the coronavirus pandemic helped boost earnings. The world’s largest producer of computer chips, smartphones and electronic displays presented the upbeat outlook yesterday, even as it remained cautious about lingering risks from the health crisis and trade tensions. The South Korean company reported a 7.2 per cent rise in second quarter net profit to Won5.6 trillion ($4.6 billion) as a rise in internet use during pandemic lockdowns propelled demand for chips. Operating profit jumped 23.5 per cent year on year to Won8.1 trillion even as sales fell 5.6 per cent to Won53 trillion in the April to June period. Samsung expects demand for mobile and graphic memory chips to improve in the second half of the year, helped by new smartphones and game consoles. Operating profit at the semiconductor division, which accounts for two-thirds of its earnings, jumped 60 per cent to Won5.4tn in the second quarter. High levels of automation at Samsung’s memory chip plants in South Korea and China meant that production suffered little disruption during the health crisis… Samsung shares edged upwards yesterday to near their highest level in about five months. The shares have jumped in recent sessions on expectations that it may benefit from Intel’s plan to outsource more chip manufacturing. 

Song Jung-a