The company disclosed consolidated sales of approximately 55 trillion won and a consolidated operating profit of approximately 6.4 trillion won. That’s a slight year-on-year increase on Samsung’s Q1 sales and profit in 2019, with a 5% boost in sales.
Samsung has yet to break down its earnings into specific services or to expand on the company’s performance in the first quarter, so Trusted Reviews reached out to analysts to learn more about what these figures could mean.
“Samsung’s Q1 2020 guidance highlights that the firm may be back on the path of growth, following a difficult 12 months between Q4 2018 and Q4 2019, where the company saw four successful quarters of total revenue decline”, said Futuresource consulting market analyst, James Manning Smith.
“With Covid-19 forcing companies across the globe to speed up their digitalization, components for data centres saw an increase in demand during the quarter, which might have overturned the less stellar performance of the mobile division”.
“The demand is impacted very negatively in North America, in Western Europe, so some of the critical markets where, for example, Samsung could have pushed the flagship S20, it’s not gonna happen”, said Gartner senior director analyst, Roberta Cozza.
While the virus won8217;t stop people from spending cash on electronics, it might prompt them to think twice about an unnecessary phone upgrade.
“Its range of foldable phones have been dogged by issues in terms of durability, turning consumers off from investing in the pricey smartphones. The fold accounted for less than 0.5% of Samsung’s shipments in 2019, and despite the release of the Z Flip, Samsung have not managed to increase that even to 1% of its Q1 handset sales”.
8220;[Samsung] will need to think about their product portfolio and they would actually maybe try to make, for example, more affordable 5G units, shift the product mix to good value for money and maybe the mid-tier of the smartphone market. Definitely, for the moment, put foldable aside because simply I don’t think there has been huge demand anyway”.
Original source: https://www.trustedreviews.com/news/samsungs-profits-are-up-but-it-might-not-be-good-news-for-the-s20-4022889?utm_source=keystone&utm_medium=keystone_core_reviews_rss&utm_campaign=trusted+reviews