Samsung managed to hold quarterly deliveries of premium smartphones and home appliances
Samsung today announced results for the first quarter of this year, which we have prepared a news cycle. In this article we will examine information about the network and mobile business of the company and the work units for the production of household appliances. In short, the company can be a good idea to keep the first and barely the second.
Mobile division of Samsung to the rescue in the first quarter of 26 trillion won ($21,29 billion), and has received an operating profit of 2.65 trillion won ($2.17 billion). The effect of coronavirus decreased in the first quarter the demand in the mobile market compared with the fourth quarter of 2019. Thus, the sales of smartphones of the company in the reporting period also decreased. Samsung managed to parry is reduced by improving the range and increasing the share of 5G devices. For example, the average selling price of Samsung flagships have grown. Also turned out to be unexpectedly high sales of Galaxy S20 Ultra as it had shown itself to be “solid” sales of Galaxy Z Flip.
In the second quarter, Samsung expects a continuing deterioration of the situation in the smartphone market. To counter this she’s gonna try and transfer part of sales online, as well as a shifting of responsibility to its business partners (strengthening B2B channels). In the second half the company expects a strong growth of competition, because everyone will have to compensate for the loss in the first half. Samsung’s answer to this will be the release of new models of Note, flexible smartphone and the mass of smartphones that support 5G.
Network business Samsung, which is engaged in production of equipment for cellular operators, proved to be better than in the previous quarter. For this company thanks to the commercialization of 5G networks in South Korea and their equipment for cell towers. Coronavirus may reduce investment in 5G, but in the long run will not be able to cancel the advent of next generation networks.
Unit Samsung home appliances bailed out in the first quarter and 10.3 trillion won ($8,44 billion) and showed an operating profit of $ 0.45 trillion won ($370 million). Demand for televisions has declined in both the quarterly and annual basis due to the seasonal factor and the epidemic of the coronavirus. However, a number of household products Samsung premium demand that was supported by the sale of the company.
It is expected that in the second quarter sales of television sets will decrease due to the weakening of consumer demand caused by coronavirus, the abolition of the world’s major sporting events and the transfer of summer Olympic games. For yourself Samsung sees the beginning of the transfer of sales online. In the second half the company will also focus on expanding choices through the Internet, and will optimize the business and to seek new opportunities for sales in the face of uncertainty.
It is symbolic that the report on the work in the first quarter Samsung made with the idea of future uncertainty. With the beginning of the year the wheels came off completely in the wrong direction, where did the world and we with him. But the main thing is not to forget that in the end everything comes back to normal.