Coronavirus News Asia

Samsung Electronics profit slips on virus


The world’s biggest smartphone maker, Samsung Electronics, reported first-quarter net profits down only 3% on Wednesday, as the coronavirus pandemic dampened consumer demand, but warned of further falls to come.

Net profits in the January-to-March period were 4.88 trillion won (US$4 billion), down 3.1% from a year earlier, the company said in a statement.

The first-quarter performance was “partially due to effects of Covid-19,” Samsung said in a statement.

And it expects weaker results in the April-June period, it said, adding that “uncertainties driven by Covid-19 will persist” into the second half. 

The firm is the flagship subsidiary of the giant Samsung Group, by far the largest of the family-controlled conglomerates known as chaebol that dominate business in the world’s 12th-largest economy.

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.

In Q2, it warned: “Overall earnings are likely to decline from the previous quarter because Covid-19 will significantly impact demand for several of its core products.”

Memory demand “is expected to remain robust for servers and PCs as more people work from home,” it said.



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