Earlier this month, Samsung had posted its earnings estimates for Q3 2020. Now, the company has published its final numbers for the latest quarter. Despite the pandemic, the South Korean tech giant has come out like a winner, posting its highest-ever quarterly revenue.
Samsung said that it saw a significant increase in consumer demand for smartphones, computers, TVs, and other devices. Even its display panel and semiconductor businesses did well during the period. The company reported that its sales climbed 8% from last year to KRW 66.96 trillion (around $59 billion). Its operating profit jumped 59% from Q3 2019 to KRW 12.35 trillion (around $10.09 billion) and its net profit rose to KRW 9.36 trillion (around $8.2 billion).
The South Korean conglomerate’s revenue was higher than market expectations. Due to the COVID-19 scenario, Samsung said that consumers purchased more smartphones and other consumer electronics. The company’s highest-ever quarterly revenue is also due to its efficient cost management, one-time gains from its display and chip businesses, and the launch of flagship products like the Galaxy Note 20 and the Galaxy Z Fold 2.
The company’s mobile sales increased by 6.1% from the previous year to KRW 29.81 trillion (around $26.3 billion). Compared to Q2 2020, its smartphone business showed a whopping 51% jump as markets opened up around the world during Q3 2020. Samsung also attributed higher sales to the increased demand for mass-market products (Galaxy A and Galaxy M series smartphones) in markets like India.
Samsung’s profits could decline in the current quarter due to the launch of the iPhone 12 series. The company also expects to receive fewer memory chip orders during the fourth quarter. While the company has warned about a possible decline in profits for Q4 2020, it expects 2021 to be better for the electronics industry.