Samsung Q1 results shows increased smartphone profits despite COVID-19

Samsung has posted its quarterly report for the January - March 2020 period and it doesn’t look that bad. The company met analysts' expectations and revealed a slight revenue decrease on a quarterly basis due to seasonality, but profits rose compared to Q1 2019.

The mobile business reported less revenue than 12 months ago, but operating profit increased. Despite a decline in shipped units, the launch of the Galaxy S20 lineup and expanding its 5G portfolio allowed the Korean company to salvage its profitability.

Samsung revealed expectations for Q2 2020 are demand to “drop sharply in most regions due to an economic downturn, caused by COVID-19”. Both sales and overall business performance will decline after many stores were closed and people suddenly were left without income, therefore they can’t afford to buy a new phone.

Samsung is not making any bold predictions for the rest of 2020, but one thing is sure - all manufacturers will aim to minimize the impact, intensifying the overall smartphone market competition. The company revealed new foldable and Note models should be expected, as well as better 5G adoption to mass-market smartphones.

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