Samsung is expecting a recovery in the mobile market

Market Trends - 30/07/2020

The tech giant Samsung Electronics announced yesterday that it anticipates progressive improvement in its mobile devices and consumer electronics in the second half of 2020.

Samsung announced that while uncertainties continue, the company will reply to improving requests through adaptable supply chain management. Some of those uncertainties hold the continuing difficulties the world is facing from Covid-19, which has contaminated more than 17 million people worldwide, as well as increasing competition.

According to Samsung, regarding the memory market, requests for microchips utilized in smartphones and gaming consoles are estimated to improve due to new product launches. Nevertheless, the need for microprocessors used in data stations would continue to be problematic due to “increased inventory levels of server customers.”

The company shares increased by 0.17% as of 1:51 p.m. HK/SIN following the company’s earlier announcement that its earnings for the three months that finished in June were on the same page with the previous guidance.

According to CNBC Experts the profit-making memory market has boosted a lot of Samsung’s earnings improvement during the last several quarters. There is a concern that data stations and cloud computing service providers may not purchase new servers and memory microchips for those servers in the second half of the year. In the first half, requests for memory microprocessors increased while the Covid-19 outbreak pushed millions of people to manage their business from home.

For the display panel market, where the company includes the mobile giant Apple as a client, the firm stated it could anticipate a “full-fledged retrace in profits from mobile displays” in the fourth quarter.

Second-quarter managing earnings appeared at $6.81 billion, and that is a more than 20% increase from 2019, because of the “firm demand” for memory chips. Experts state it was a one-time installment from the giant Apple.

The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.

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