Samsung achieves record sales and sees smartphone sales increase by 6 percent

Samsung’s quarterly sales were 59 percent higher than last year due to increased sales of memory chips and consumer products. The quarterly turnover of the smartphone division was 6 percent higher than last year, partly because of the Note20.

S20 series

Samsung’s quarterly revenue from IT & Mobile communications, which includes smartphone sales, was 29.81 trillion Korean won, equivalent to 22.4 billion euros. That is an increase of 6.1 percent compared to last year and an increase of 51 percent compared to the previous quarter. The latter increase is due to the introduction of the Galaxy Note20 and Z Fold2 and a recovery in demand for ‘models for the masses’, such as the Galaxy A and M. According to Samsung, improved sales of tablets and wearables also helped increase sales.

Samsung expects weaker sales for the current quarter due to increased competition, among other things, with which the company probably mainly refers to the arrival of the iPhone 12. The company plans to expand its sales next year by introducing more different Galaxy S and Note models and improving the competitive edge of foldable smartphones, likely targeting price cuts in this category.

Sales of the Display Panel division were down 21 percent, but with the steady increase in smartphone sales, Samsung expects results from screen panel sales to improve. Consumer Electronics turnover did increase, due to increased TV sales. The quarterly turnover of the semiconductor division also rose, by 7 percent. Memory revenue increased due to increased PC and smartphone sales and home working. The Foundry Business achieved its highest quarterly turnover to date due to, among other things, increased demand for chips for high-performance computing.

Samsung’s total quarterly turnover amounted to $ 50.3 billion, an increase of 8 percent compared to last year and Samsung claims never before achieved such a high quarterly turnover. For the current quarter, Samsung expects lower results due to, among other things, weaker demand for memory chips for servers and increased competition from smartphones and consumer electronics.