Samsung made record profit in Q2 2020; expects upcoming Galaxy Note 20 and Fold devices to boost momentum

Samsung recognised the potential of online sales in India and is trying out a few referral programs to lure customers to boost sales numbers.

Samsung recorded a better than expected 23 per cent jump in profit year-on-year in the second quarter of 2020 despite the ongoing coronavirus crisis. The performance amid the pandemic is better than estimates by experts and the company’s profit has surged now to 8.15 trillion won ($6.84 billion). Samsung’s performance is impressive as the numbers have risen despite a fall in revenue by 6 per cent due to the lower number of mobile phone sales.

Samsung has unveiled some impressive phones due for launch later this year and the company expects the revenue to grow in months going ahead in 2020. Some of the probable new launches from Samsung are Galaxy Note 20 (series), Galaxy Z Fold 2 which have gathered quite a bit of interest among buyers. The display sector, which supplies panels to other smartphone manufacturers, saw demand fall but had earnings boosted due to a “one-time benefit.” It is believed to be Apple’s compensatory payment after the US firm purchased fewer iPhone panels than expected.

The all-important chip business of Samsung has shown seemingly mixed results amid the pandemic as the shift to work from home by companies across the world has dipped demands. The demand for DRAM used in data centers and PCs is high, but down in mobile devices. The demand for Samsung’s DRAM used in data centers and desktops has risen but the demand for the DRAM in phones has slumped.

Samsung recognised the potential of online sales in India and is trying out a few referral programs to lure customers to boost sales numbers. The South Korean giant yesterday announced three referral programs to nudge potential customers into buying products such as mobile phones, PCs, laptops, and other accessories from its shopping website and apps.