Finance

Samsung net profits down by 3% in Q1

Samsung has reported its financial results for the first quarter of 2020 which showed decreased profits due to the pandemic.

Their first quarter net profits are down by 3 percent due to the pandemic-induced decrease in consumer demand, with expectations of further falls in demand.

Net profits from the period amounted to $4 billion, down from 3.1% from its corresponding quarter in 2019.

In a statement, Samsung mentioned that they expected “uncertainties driven by COVID-19” to persist into the second half, due to a big impact which is set to affect their financial reports in the April-June period.

The coronavirus has wreaked havoc across the global economy and earlier this month, Samsung suspended its operations at 11 overseas assembly lines as a response to it.

The firm warned that in the second quarter, “Overall earnings are likely to decline from the previous quarter because COVID-19 will significantly impact demand for several of its core products".

Adding that memory demand “is expected to remain robust for servers and PCs as more people work from home” however “sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally.”