Samsung posts record Q3 2020 revenues as foldables gain momentum
What you need to know
- Samsung's operating profit jumped 59% YoY in Q3 2020 to 12.35 trillion won ($10.89 billion).
- The company's smartphone sales jumped nearly 50% in the July-September period.
- Samsung expects profit to decline in the fourth quarter, mainly due to weakening memory chip demand and intense competition in smartphones and consumer electronics.
Samsung today announced its financial results for the third quarter of 2020. The company reported total revenue of KRW 66.96 trillion ($59.1 billion) during the quarter, thanks to strong consumer demand and flexible supply chain management. Its quarterly operating profit jumped 52% over the previous quarter to KRW 12.35 trillion ($10.89 billion), driven by strong growth in sales of smartphones and consumer electronics products.
Thanks to an increase in market demand in the third quarter, Samsung's smartphone sales increased by nearly 50%. In addition to flagship models such as the Galaxy Note 20 and Galaxy Z Fold 2, stronger sales of mass-market models in markets such as India also helped drive growth during the July-September period. However, Samsung expects its smartphone shipments to decline in the fourth quarter due to "subsiding effects from new flagship model launches." In 2021, Samsung plans to boost sales by launching more foldable flagship phones and affordable 5G-enabled phones.
As demand for smartphones increased significantly in Q3, the System LSI Business showed significant growth, including CIS and SoCs. Samsung's consumer electronics unit also reported sharp growth in sales of premium TVs and appliances.
Samsung is expecting a decline in profits in the fourth quarter of the year, due to increased competition in the smartphone and consumer electronics segments. It is also anticipating weaker memory chip demand from server customers.
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