Samsung makes more profit through chips and screens

The Socs, Memory, Storage and Displays divisions drove Samsung’s profits in the quarter. Earnings from smartphones declined slightly compared to the same period a year earlier.

The operating profit in the field of displays is mainly due to an unnamed ‘global customer’ who purchased many OLED screens, according to the figures. The most logical candidate is Apple, which sold many copies of its iPhone 12 phones with Samsung OLED screens in them. Turnover from the delivery of displays increased by a quarter compared to the end of 2019.

Shipments of nand and memory continued well and were up year-on-year, despite the average price of chips falling and the Korean won exchange rate against the dollar.

On the smartphone front, Samsung says declining sales and operating profits are due to strong competition at the end of the year. Samsung also spent more money on marketing than estimated. That should improve in the coming quarter with the release of the Galaxy S21 phones. That release takes place earlier than the release of Galaxy S phones in previous years.

Samsung Electronics achieved a total quarterly turnover of 61 trillion Korean won, currently about 45 billion euros. The operating profit amounted to 6.7 billion euros, an increase of approximately 26 percent compared to the previous year.

Apple iPhone 12 phones. This resulted in an increasing turnover at Samsung’s division that supplies displays