With strong chip sales and panel turnaround, Samsung’s Q2 operating profit increased by 26.3% quarter-on-quarter

On July 30, Samsung Electronics announced its financial report for the second quarter of 2020 (April to June). The performance was better than expected, mainly due to the steady performance of the chip business.

Compared with the first quarter, overall operating profit increased by 26.3% quarterly, while net profit increased by 13.7% quarterly and revenue decreased by 4.3% quarterly.

Samsung said that the second quarter's outstanding performance was mainly driven by the DS department. The reason was that the epidemic led to the global telecommuting wave, server demand increased, and Samsung chip sales also increased.

According to MoneyDJ reports, the one-time income of the Display Panel Division is also an important factor driving Samsung's second quarter profit. Samsung did not disclose the exact amount of the one-time gain, but industry insiders speculated that the amount of compensation paid by Apple was as high as US$950 million because the OLED panels for smartphones purchased from Samsung were lower than the agreed amount.

Samsung's display department was in a loss-making state in the first quarter, but benefited from a one-time gain in the second quarter and returned to profitability.

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