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ls tS Samsung Electronics’ profits boosted by teleworking - The Times Hub

Samsung Electronics’ profits boosted by teleworking

Samsung Electronics’ profits boosted by teleworking

South Korea’s Samsung Electronics, the world’s largest maker of smartphones and memory chips, on Thursday announced a 26.4% year-on-year increase in fourth-quarter net profit, thanks to the boom in teleworking due to the pandemic, which boosted demand for electronic products.

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From October to December, the South Korean giant’s net profit reached 6.610 billion won (4.9 billion euros), the group said. For 2020 as a whole, net profit jumped 21.5 percent to 26.4 trillion won on revenue up 2.8 percent.

“Even as the difficulties caused by Covid-19 persist, the company’s efforts to ensure a stable supply of products and services globally have contributed to Samsung’s fourth quarter results,” the group said in its communicated.

The coronavirus has wreaked havoc on the global economy due to restrictions and travel limitations imposed in an attempt to stem the pandemic.

However, Covid-19 – which has claimed more than two million lives worldwide – has had a positive impact for many tech companies, including Samsung.

Global memory chip manufacturers are expected to post record sales this year, due to the persistence of pandemic teleworking, according to Taipei-based specialist firm Trendforce.

“Samsung sales increased year over year due to the spread of what is known as the ‘new normal’, which has resulted in increased demand for electronics,” said Jene Park, analyst for Counterpoint Research, a market watcher.

The group, however, pointed out that its profits fell from the previous quarter due to lower memory chip prices, weak product sales, higher marketing costs and the appreciation of the Korean won.

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