This archive report was first published on 7 July 2020.
On July 7, 2020, Samsung Electronics predicted a 23-percent increase in second-quarter operating profit, defying analyst forecasts of a decline.
The world's largest smartphone and memory chip maker attributed the rise to strong demand for memory chips and displays, which offset the impact of the coronavirus pandemic on smartphone sales.
According to an earnings estimate, Samsung expected operating profit to be 8.1 trillion won ($6.8 billion) for April-June, up from 6.6 trillion won in the same period last year.
Analysts pointed to increased demand for memory chips for PCs and a continuing rise in DRAM chip prices as key factors driving the earnings surprise.
TV sales, which have been on a long-term decline, were also moving upward as people spend more time at home, said James Kang, an analyst at Euromonitor International Korea.
However, Samsung attributed the estimated operating profits rise to a one-off profit generated from its display division, without offering details.
The company predicted overall sales in the second quarter would be down by 7.3 percent from a year earlier.
Looking forward, analysts expect the firm's smartphone and television businesses to improve, with mobile sales growing as restrictions are lifted in some parts of the world.
