Samsung has earlier today released its Q2 2020 earnings report showcasing the performance of various arms of its business. The company’s profits were up despite the obvious – COVID-19.
The South Korean conglomerate reported an increase in its quarterly operating profit by 23 percent year-on-year to 8.15 trillion won (about $6.84 billion).
Smartphone sales fell during the period, which the company termed as “weaker.”
“The Mobile Communications Business reported solid profitability on marketing cost reductions and other cost optimizations, despite weaker sales of smartphones,” the company said.
According to Canalys, Samsung shipped 53.7 million smartphones in the period, down by nearly a third year over year.
Samsung is optimistic about the recovery of its smartphone business in the second half of the year. And that is despite being faced with two biggest uncertainties yet; “persisting uncertainties from COVID-19 and growing competitions.”
Canalys’ latest report has shown that Huawei surpassed Samsung to become the top smartphone company in Q2. It’s not just competition from Huawei alone as it may seem. Samsung is facing intense competition in large markets like India.
In the second half of 2020, the company wants to do two things to help in the recovery of its smartphone business. The first is to expand sales of its mid-tier smartphone sales. Secondly, to launch new flagship smartphones — the Galaxy Note and a foldable phone.
Samsung will launch its new flagship Note phones on August 5. The company will unveil a total of five new “power” devices. A recent teaser video posted by the company on YouTube shows the company is about to launch a smartwatch, a tablet, a foldable phone, and the Galaxy Note.
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