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Samsung Q2 results likely to be hit by Covid-19

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Earlier this week Samsung Electronics posted its first quarter results of 2020, reporting low figures due in part to the Covid-19 pandemic.

Total revenues reached $45 billion (KRW 55.33 trillion) down 7.6% from the previous quarter due largely to ‘weak seasonality for the Company’s display business and Consumer Electronics Division’ as well as the effects of Covid-19.

Operating revenue was also lower quarter-on-quarter, topping to $5 billion (KRW 6.45 trillion).

Looking ahead, the company says that overall earnings are likely to decline from the previous quarter because Covid-19 will significantly impact demand for several of its core products.

For example, sales in servers and PCs are expected to remain strong as more people work from home, but it is likely mobile market may soften.

Specifically, smartphones and TV sales are expected to decline significantly as Covid-19 changes consumer demand and more store and plant close around the world.

To combat this, Samsung plans on boost its online sales capabilities and become more flexible with its global supply chains.

Additionally, the company focus on optimising resource allocation in the short term, ‘while continuing to strengthen its technology leadership and develop innovative set products’.

The news comes as global research firm Omdia, posted findings that indicate that the mobile industry is expected to face losses of $51 billion for year.

 

 

 

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