As the coronavirus continues to ravage the world, Samsung Electronics expects its second-quarter revenues will be down 7.4% year-on-year, but the company’s second quarter operating profit will be driven by strong demand for memory chips and displays, up 23% year-on-year.
Samsung Electronics said that the company’s operating profit in the second quarter is expected to increase by 23% year-on-year to 8.1 trillion won, up from 6.6 trillion won in the same period last year and well above analysts’ estimates of 6.4 trillion won due to strong chip sales in data centers offset weak demand for smartphones and TVs during the new coronavirus pandemic.
The company’s sales are expected to reach 52 trillion won ($43 billion) in the second quarter compared to the same period last year, down 7%.
Samsung Electronics, a manufacturer of smartphones and memory chips, has a huge business selling memory chips to device manufacturers around the world. As more and more people work at home, the “strong” demand for servers and personal computers is the company’s memory chip business benefited from this, but its mobile phone, television, and other businesses were affected by the breakout. In recent months, the company’s chip business has been boosted by the data centers.
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