The Company will focus on providing value-added products such as panels for ultra-large and 8K TVs as well as curved monitors.In the second half, uncertainties driven by COVID-19 will persist as the duration and impact of the pandemic remain unknown. The Company will focus on expanding demand for high-density server SSD of more than 2TB while continuing to extend migration to 5th-generation V-NAND.For large displays, while it winds down the LCD business, the Company will continue to address demand from its customers and accelerate product development based on new technologies such as QD Displays.For the second half, while mobile demand – most affected by COVID-19 – remains as one of the uncertainties, overall memory conditions are likely to be favorable due to server and PC demand for a faster and more reliable cloud service experience.
In the second quarter, the Company aims to expand EUV leadership, beginning with the start of mass production of 5nm products, while closely monitoring the uncertain market situation caused by COVID-19.As for the Networks Business, earnings in the first quarter improved QoQ thanks to the expansion of 5G commercialization in South Korea and other markets. As such, the Company will focus on risk management and identifying new sales opportunities in online demand.As for NAND, the market is seen as continuing to stabilize in the second quarter as the impacts from a decrease in smartphone set demand are offset by growing SSD demand from datacenters. Earnings from OLED screens are likely to be weaker due to a stagnant smartphone market.The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, recorded KRW 10.3 trillion in consolidated revenue and KRW 0.45 trillion in operating profit in the first quarter.The Memory Business saw solid demand in the period, despite weak seasonality and the effects of COVID-19, thanks to continued investments in 5G infrastructure and increased demand from cloud applications related to remote working and online education.For NAND, mobile demand was relatively solid due to the expansion of products from major customers adopting high-density storage greater than 128GB.
Total revenue was KRW 55.33 trillion, a decrease of 7.6% from the previous quarter mainly due to weak seasonality for the Company’s display business and Consumer Electronics Division and partially due to effects of COVID-19. Press Release I Purple You: Introducing Samsung Galaxy S20+ 5G, S20+ and Galaxy Buds+ BTS Editions June 15, 2020. Press Release Samsung Globally Launches Bespoke: A Customizable Refrigerator that Caters to Various Consumer Lifestyles June 15, 2020. Compared to the previous year, profits from the TV business declined amid pricing pressure from intensifying competition, while home appliances saw an improvement on the back of strong sales of new premium products.In the first quarter, Samsung Electronics’ capital expenditure totaled KRW 7.3 trillion, including KRW 6.0 trillion spent on semiconductors and KRW 0.8 trillion on displays.Earnings from the Memory Business improved as demand was solid mainly from servers and PCs, while demand from mobile remained steady. In particular, the ASP of flagship smartphones increased compared to last year on the back of higher-than-expected share of Galaxy S20 Ultra sales as well as solid sales of the Galaxy Z Flip.In the quarter, foreign exchange movements had little impact on the overall operating profit as the positive effects from a stronger U.S. dollar and euro against the won – felt mainly in the component business – were offset by weakness in currencies in major emerging markets.Samsung Electronics today reported financial results for the first quarter ended March 31, 2020.
Samsung Announces AppStack, a Cloud Software Marketplace Built for the Way Business is Done Today.
The Company will flexibly manage its product mix with a focus on growing server demand and strengthen cost competitiveness by expanding technology migration.In the Display Panel Business, mobile displays posted a decline in earnings amid weak seasonality and lower sales in China due to COVID-19 related shutdowns, while losses narrowed in the large panel business.The Foundry Business saw a slight decrease in earnings due to a decline in demand for HPC chips from Chinese customers.
Traditional TVs have focused solely on technical features such as picture quality. The Company also plans to enhance product competitiveness by expanding 5G adoption to mass-market smartphones and improve operational efficiency across all areas throughout R&D, production, supply, channel and marketing.The Mobile Communications Business saw profits increase from the previous quarter and from a year earlier despite weakening sales toward the end of the first quarter. Total revenue was KRW 55.33 trillion, a decrease of 7.6% from the previous quarter mainly due to weak seasonality for the Company’s display business and Consumer Electronics Division and partially due to effects of COVID-19.