The company expects weaker results in the April-June period as 'uncertainties driven by COVID-19 will persist' into the second half.
SAMSUNG. Photo by Jung Yeon-je/AFP
The first-quarter performance was"partially due to effects of COVID-19", Samsung said in a statement. The figures come as the coronavirus pandemic wreaks havoc across the world economy – earlier this month Samsung had operations suspended at 11 overseas assembly lines – with expectations rife of a looming global recession.
But"sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally". "While a contraction of the global smartphone market is expected as a result of the COVID-19 outbreak, demand for 5G smartphones is forecast to grow," DJ Koh, president of Samsung's mobile division told the firm's shareholder meeting last month.
"Some of Samsung's back-end server DRAM packaging operations are based in Luzon, the Philippines. Therefore, the continued quarantine of Luzon may affect the shipment schedule of Samsung's server DRAM modules," it said.
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