Analyst: Samsung's sharp increase in Q2 chip sales in 2020 is difficult to offset the weak smartphone sales

According to a Reuters report, analysts said that telecommuting and education have boosted the demand for data centers to drive sales of Samsung's electronic chips, but it is still difficult to offset the impact of the weak sales of its smartphones in the second quarter.

Cape Investment & Securities analyst Park Sung-soon said, "As demand improves, DRAM prices soared to help Samsung continue its strong performance in the second quarter." However, Park Sung-soon also pointed out that DRAM price increases may be caused by data center hoarding Chip-driven, so unlikely to continue.

As for Samsung’s smartphone business, Hyundai Motor Securities estimates that Samsung’s operating profit fell 16% in April-June this year. Because during the new crown epidemic, the sales of electronic products decreased as disposable expenditure decreased. In addition, analysts emphasized that Samsung smartphone shipments bottomed in April and it may take a long time to recover.

According to data from the market research agency Refinitiv SmartEstimate, the company's profit may fall 4.5% year-on-year to 6.3 trillion won (US$5.25 billion). Samsung Electronics is expected to announce its second quarter revenue and operating profit briefing on Tuesday, and it will announce detailed financial results at the end of this month.

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