Samsung Electronics records KRW 67 trillion in Q3 sales, breaking its all-time record.
Published2020.10.30 14:59Huawei benefits from US sanctions on China
Operating profit hits all-time highs in home appliances and mobile devices
Samsung Electronics announced on the 29th that it recorded consolidated sales of 66.96 trillion won in the third quarter. This represents an all-time high, surpassing the previous quarterly record of 65.98 trillion won in 2017. Operating profit also increased 58.8% year-on-year to 12.35 trillion won.
This is thanks to the significant improvement in mobile (smartphone) and TV/home appliance performance caused by the coronavirus pandemic, and the semiconductor sector also performed well thanks to the US sanctions on China's Huawei.
Samsung Electronics' quarterly operating profit exceeded 10 trillion won for the first time in seven quarters, since the fourth quarter of 2018 (10.8 trillion won). By division, the mobile (IM) business recorded operating profit of 4.45 trillion won, the TV and home appliance (CE) business recorded 1.56 trillion won, the semiconductor business recorded 5.54 trillion won, and the display business recorded 470 billion won. Both sets and components delivered solid performances.
In particular, the mobile (IM) and set sectors, including TV and home appliances (CE), which had been sluggish in the first half of the year due to COVID-19, showed strength. The mobile division recorded an operating profit of KRW 4.45 trillion, driven by strong global sales of strategic smartphone models such as the Galaxy Note 20 series and Galaxy Z Flip 2 released in the third quarter.
Sales in the mobile sector also exceeded 30 trillion won, reaching 30.49 trillion won.
Sales of TVs and home appliances also showed brisk performance, with the consumer electronics (CE) division posting an operating profit of KRW 1.56 trillion.
Contrary to expectations that semiconductors would perform worse than in the first half of the year due to a decrease in demand for server memory and falling prices, operating profit reached 5.54 trillion won, exceeding the second quarter's performance (5.43 trillion won).
Server DRAM prices fell due to increased inventory at server companies, but PC demand remained strong due to COVID-19 untact (non-face-to-face) demand, and sales of mobile semiconductors and graphic DRAMs were brisk as sales of new smartphones and game consoles increased.
In particular, Huawei, a Chinese company facing US sanctions in the third quarter, benefited from a massive preemptive purchase of memory semiconductors. Furthermore, the recent increase in significant new orders in the foundry (semiconductor contract manufacturing) sector is also believed to have contributed to the company's performance.
The display (DP) division recently achieved sales of KRW 7.32 trillion and operating profit of KRW 470 billion, driven by factors such as rising display prices and increased sales of TVs and smartphones.
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