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Samsung defies the pandemic driven slowdown with quarterly profit up by 58 percent

The global pandemic WFH phenomena has helped to buoy Samsung's sales. (Image: Notebookcheck)
The global pandemic WFH phenomena has helped to buoy Samsung's sales. (Image: Notebookcheck)
Samsung has joined Apple in beating analyst expectations as well as bucking the global downturn with a 58 percent jump in profit for the September quarter. The result was driven by various factors including an unusual number of parts orders for Huawei as well as the strong performance of its mid-range mobile devices.
Sanjiv Sathiah,
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One of the unusual features of the global viral pandemic has been the big bump in sales of electronics technology. With workers forced to work from home, the purchase of consumer electronics including smartphones, tablets and PCs has spiked despite the otherwise bleak global economy. The first signs of this came with Apple’s bumper fiscal third quarter result announced at the end of July when it announced profit of US11.25 billion. Now Samsung has joined it in announcing that it too has enjoyed better than expected sales by recording a profit of US$10.6 billion.

Among the key drivers of Samsung’s result were the sales of parts including SoC’s to embattled Chinese tech giant Huawei. Falling foul of the Trump Administration, Huawei has been banned from doing business with any companies that incorporate US-patented technologies and has been forced to stock up on parts. Also helping to drive Samsung’s 58 percent jump in profit (a two-year high) were the sales of its smartphones. In particular, its mid-range A-series smartphones have thrived during the past three months while its flagship devices like the Galaxy Note20 and Galaxy S20 have also fared well.

Despite beating analyst’s expectations, Samsung’s shares dipped slightly and were down 0.3 percent at the time of writing. Analysts are forecasting a decline in memory chip prices with the DRAM modules that Samsung makes expected to decrease in value by 10 percent. Further, Apple’s new iPhone 12 range launch could also cut into some of Samsung’s sales, although its new Galaxy S20 FE range could help offset this. Given the general state of the global economy, however, it looks like it remains a good time for companies like Samsung to be the consumer electronics market.

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Sanjiv Sathiah
Sanjiv Sathiah - Senior Tech Writer - 1197 articles published on Notebookcheck since 2017
I have been writing about consumer technology over the past ten years, previously with the former MacNN and Electronista, and now Notebookcheck since 2017. My first computer was an Apple ][c and this sparked a passion for Apple, but also technology in general. In the past decade, I’ve become increasingly platform agnostic and love to get my hands on and explore as much technology as I can get my hand on. Whether it is Windows, Mac, iOS, Android, Linux, Nintendo, Xbox, or PlayStation, each has plenty to offer and has given me great joy exploring them all. I was drawn to writing about tech because I love learning about the latest devices and also sharing whatever insights my experience can bring to site and its readership.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 10 > Samsung defies the pandemic driven slowdown with quarterly profit up by 58 percent
Sanjiv Sathiah, 2020-10- 8 (Update: 2020-10- 8)