Samsung Boosted Its Overall Q2 Profit Despite the Coronavirus

Samsung Boosted Its Overall Q2 Profit Despite the Coronavirus

The negative impact on most economic activities around the world during the coronavirus outbreak is no secret.

Companies have been struggling to keep up with the changes that came with it and most of them suffered a massive decrease in profits, depending on the sector of activity.

Considered to offer non-essential goods, the smartphone industry suffered a great deal, but somehow Samsung managed to keep its status and survived this critical period of time. 

Surprisingly, the manufacturer even boosted its Q2 profits, which may be directly connected to “strong chip demand from data centers.” The company forecasted a 23-percent rise in Q2 operating profit Tuesday and said in an earnings estimate that it expected operating profit to sum up to $6.8 billion for April-June.

“The earnings surprise seems to have stemmed from Samsung’s memory chip sector,” said Park Jin-suk of market observer Counterpoint, pointing to “increased demand for memory chips for PCs and a continuing rise in DRAM chip prices”.

On the other hand, recent reports pointed out at the company’s poor smartphone sales numbers, so it remains to be seen if the memory chip department was the only one that survived the coronavirus.

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