Samsung Announces Biggest Revenue After Surge in Flagship Phone Sales
Samsung Electronics has recently announced its revenue for the July to September 2020 period. They made a revenue of 66.96 trillion won (or $59 billion), and an operating profit of 12.35 trillion (or $11 billion). That is the biggest quarterly revenue improvement ever for the South Korean electronics company. They said that they were able to see a surge in client demand following coronavirus disruption.
Samsung said in a statement that even as the coronavirus pandemic sweeps the entire globe, key economy reopenings resulted in a huge increase in consumer demand. They were able to respond in an aggressive manner, though flexible international supply chain management.
The company said that the smartphone demand increase helped fuel the revenue figures, while their operating profit witnessed a 59% year-on-year improvement that Samsung puts down to higher sales of both consumer products and memory chips. Part of the surge in memory demand was the situation concerning Huawei and its U.S. sanctions.
However, the mobile phone and electronics company warned of lower profits in the upcoming quarter because of higher competition in the smartphone industry and an expected slump in memory. While they launched many flagship phones last quarter, including the Galaxy Z Fold 2, Galaxy Z Flip 5G, Galaxy Z Fold 2, and its Galaxy Note 20 line, the annual iPhone launch suffered a slip into October.
This means that Samsung was able to successfully launch its new smartphones without going up against its strongest competitor in many major markets. Though, elsewhere, Huawei’s sanctions- and smartphone decline will give an opportunity for both businesses to compete for the additional market share. Moreover, the launch of the newest iPhone will also offer an improvement to Samsung’s OLED display venture.
Looking forward to the following year, Samsung said it is planning to focus more on foldable mobile phones as a way to set its flagship lineup apart from the rest. It also aims to make its 5G more of a mass-market scheme.
How did Samsung stabilize its supply chain amidst the pandemic?
There was a point when S. Korea had the second highest number of coronavirus cases outside China. Afterwards, it became a full-blown pandemic that wreaked havoc in the entire world, specifically in North America in Europe. Different businesses have taken a huge hit, with widespread supply chain disruption and decreasing revenues.
Samsung, S. Korea’s biggest businesses, quickly realized the threat, and immediately made adjustments to keep its own supply chain intact. It formed a “coronavirus response task force” to secure supplies as soon as the first case was confirmed in their country. The company even sent its own beginners to the factories of their suppliers to help them speed up the production.
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