Corporate

As Other Companies Drown, Samsung Is Apparently Going Up In Profits

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Samsung S20 line up
Image courtesy Techradar

South Korean tech giant, Samsung, announced its stipend numbers since the outbreak and so far the company appears barely affected. As the tech industry is projected to have lost a lot since the coronavirus broke out, one company reportedly untouched. According to Samsung, its first-quarter revenue was approximately $49 billion (you don’t want to know how much that really is). This means the company has had a 5% year-on-year (YoY) increase. Furthermore, its profit is expected to rise by 3% to $5.23 billion.

The company, however, did not break down its earnings by division or comment as that will be done on the final report later this month. But how did Samsung get to earn when everything else is going down?

An expert, speaking to CNBC, suggested that the company proprietary chip may have been a reason for this rise in the short term. This is due to the extra demand on data centres for the chip as more people shift to working from home.

So, it most likely has nothing to do with the company’s famous products like smartphones or household appliances.

Nevertheless, it seems unavoidable that Samsung will be facing a hit later on in the second quarter. Retail closures, supply chain disruption and general financial uncertainty will definitely be a cause for worry. they may not be reflected in the current results but will totally depend on the global occurrences in the long-term.

The company’s rivals like Apple are also expected to release its earnings guidance late this month. But you should know that the company has already warned of shocking numbers due to the impact of the coronavirus.

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