Like many other companies this week, Samsung is revealing its quarterly report figures for Q4 2020, which ended for the South Korean firm in December of last year. While others faltered in 2020 due to the COVID-19 pandemic, Samsung has escaped the year with a profit.
The company posted operating profit of $32.1 billion and revenue of $211.5 billion, representing year-on-year increases of 29.6 percent and 2.78 percent respectively.
Zeroing in on Q4 in particular, quarterly profit rose 26.4 percent, buoyed by the company’s performance in the display and memory chip markets. The latter segment, however, provided mixed results for the firm.
“The Memory Business saw earnings decline quarter-on-quarter despite solid shipments, weighed down by a continued decline in chip prices, the won’s strength and initial costs from new production lines. The System LSI and the Foundry Business also took a hit from the stronger won, even though orders from major global customers increased,” the manufacturer explains.
“Profit from the Display Panel Business grew significantly both QoQ and YoY, thanks to a sharp rise in mobile display production and improved demand in the large panel market,” it adds.
Looking to the upcoming quarter, the company looks to be tampering expectations when it comes to its memory business.
“Samsung Electronics expects overall profit to weaken in the first quarter of 2021. The Memory Business will likely continue to be affected by the ongoing strength in the won and costs associated with new production lines, despite solid demand from mobile products and data centers,” it notes.
That said, its smartphone/mobile division is anticipated to pick up any of the slack, with the recently released Galaxy S21 series being highlighted. Perhaps that’s why Samsung chose to launch the phones so early into the new year?
“The Mobile Communications Business is set to see robust sales of flagship smartphones such as the Galaxy S21 and new mass market models. The Consumer Electronics Division will likely post stable results despite weakness in seasonal demand, underpinned by new product launches and introduction of new premium lineups,” the report confirms.
With Samsung still holding the crown in 2021, it looks like this year it aims to consolidate while competitors continue to negotiate the impact of the pandemic.