After Samsung saw its profits dip in 2019, things are looking up since the latter half of 2020. On Friday, the South Korean electronics giant announced that it expects its Q4 profits to soar 25 percent to more than $8 billion when figures are released later this month.
In Q3, profits had already been up by more than 52 percent compared with the same quarter in the previous year. Samsung gave strong consumer demand as the reason profits increased. The upwards trend was especially pronounced for microchips and consumer products, according to Samsung. The trend in the smartphone segment, especially important for Samsung, had lagged all through 2019 as consumers were holding off on purchases. With 5G-ready phones and new foldables adding potential incentives to buy, demand recovered in 2020.
The semiconductor business, which together with smartphones is responsible for more than 80 percent of the company’s profits, recovered as well as demand for smartphones and other electronic devices increased, partly aided by the coronavirus pandemic driving demand for electronics. A strong Won helped Samsung along as well.