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Samsung revenue declines in the first quarter of the year but COVID-19 was not the main cause

The mobile communications business saw profits increase compared to the previous quarter, as well as when compared to last year. Despite weak sales at the end of the first three months of 2020, the increase in profit was due, inter alia, to the launch of the Galaxy S20 in the middle of the outbreak of the new coronavirus.

Samsung predicts decrease in sales of smartphones and TVs

With an eye on the quarter ending in June, the company expects the memory bussiness sector to remain "solid", but earnings are expected to decline compared to the previous quarter. The COVID-19 pandemic will be the biggest culprit, as it affects demand for some of the main parts that Samsung supplies.

As for the component business, Samsung believes that demand for servers and PCs will remain "robust", with people continuing to work from home. Still, the mobile market may weaken. The gains with OLED screens are likely to be weaker, due to "a stagnant smartphone market".

Not very encouraging are the expected values ​​in relation to sales and profits of products such as smartphones and televisions, "which should decrease significantly". The pandemic, once again, is the cause of this reduction, as it affects demand and leads to the closure of many stores and factories around the world. In this sense, the company guarantees that it will reinforce its online sales resources.

In view of the period of uncertainty ahead, in memory business the company plans to deal with changes in the market through "flexible investments and adjustments to the various products". As for OLED, the company guarantees that it will meet demand for new product launches and will expand its presence in new areas of application, such as folding screens.

In the mobile communications business, Samsung intends to strengthen the product line by introducing new high-end models. But the company wants to expand the offer of the 5th generation of mobile network to the most accessible gadgets.