The new type of coronavirus outbreak spread from China to the world has affected the technology sector like all other sectors, but Samsung's financial statement for the first quarter shows that it has survived this crisis period very well. The firm announced that it had earned $ 44.9 billion in revenue in the first quarter, an increase of approximately 5 percent.
COVID-19 pandemics, which have been transmitted to more than 1.3 million people worldwide and cost the lives of nearly 75 thousand people ; It caused significant breakdowns in many sectors such as retail, transportation, automotive, sports and technology.
As you know, many companies especially in the smartphone sector prefer China as the production base due to its cheap labor force . The fact that the Asian country was the center of the new type of coronavirus epidemic caused significant disruptions in the supply chains of companies such as Apple, Huawei and Xiaomi. Samsung , the industry's largest brand, is going through this process - at least so far, without much damage.
Samsung generated $ 44.9 billion in revenue in the first quarter of 2020
South Korean firm, one of the first technology giants to announce earnings figures since the coronavirus pandemic has erupted, said its first quarter revenue was
$ 44.9 billion, an increase of about 5 percent . Increasing its operating profit by 3 percent to $ 5.23 billion in the period in question , Samsung reveals once again that it is a strong business model.
Analyst SK Kim, from Japanese investment bank Daiwa Securities, told the American CNBC channel that Samsung's memory chip unit will perform well in the short term due to the extra demand for data centers as a result of the increase in the rate of working from home.
It seems inevitable that Samsung's consumer electronics division is particularly affected by the closure of physical stores, disruption of the supply chain and financial uncertainty. This may not yet be reflected in the company's earnings results, but we can see its effects in the long run.
Another giant in the technology industry , Apple , said last month that it will not reach its financial target in the first quarter due to slower production due to the coronavirus epidemic and reduced demand for smartphones . The company in Cupertina predicted that it would earn between $ 63 billion and $ 67 billion in the quarter, which would end at the end of March.