Through the preliminary Q1 result, It is shown that Samsung has been affected by COVID-19.
Samsung will release financial statements for the first quarter of 2020 with signals that are lower than analysts’ expectations but slightly higher than last year. The global epidemic also has a lot to do with the phone business, but fortunately, they have other areas pulled back when semiconductor chips are still considered very important for Samsung.
According to newly released information, Samsung expects that in the first quarter of 2020, it will reach $44.9 billion in revenue and $5.2 billion profit. It’s considered as lower than analysts expect what Samsung can do. A year ago, Samsung achieved $ 42.8 billion in revenue and $ 5.1 billion in profit.
We have to wait for a detailed report to know which array will make the most money but it is predictable that it is the semiconductor chip. Due to the general situation, it is certain that Samsung’s smartphone segment will be affected much, even the S20 series will have lower purchasing power than last year’s S10.
Global smartphone sales plunged the most in February, down 38% to 61.8 million devices, according to Strategy Analytics. Whereas if the whole year shipments of mobile phones likely will drop 13% this year to 1.57 billion units, a 10-year low, while smartphones alone, shipments should fall to 1.26 billion units from 1.41 billion in 2019, the researcher said. In the second quarter, global mobile phone sales should tumble 29% from a year ago, CCS noted.
The expected drop is a blow to handset makers. 2020 was supposed to be a strong year for the industry, as innovations like 5G and foldable screens got people shopping again. Instead, financial struggles and worries about COVID-19 will limit the number of devices companies can make and how many phones people will actually buy. Even once the worst of the pandemic is behind the US and other markets, the global economy will likely continue to struggle, CCS said.
China and other Asian countries like South Korea saw the first wave of the virus late last year and early this year. That caused a big drop in smartphone sales in February, with shipments down 38% globally, according to researcher Strategy Analytics. Now the US, Europe, and other regions are struggling to contain the outbreak. The number of cases has been rising exponentially and is expected to hit 1 million any day now.