The world’s number one smartphone, the South Korean Samsung Electronics, said Tuesday predicted an increase in operating profit in the first quarter. The group is still little affected by the economic repercussions of the coronavirus pandemic.
In a very brief statement, the group, flagship of the Samsung Group conglomerate, said that its business continued to grow until the end of March. And he abstained from pronouncing on the result.
Operating profit should have increased by 2.7% to 6,400 billion won (4.9 billion euros), and turnover by 5% to around 55,000 billion won (41, 8 billion euros).
All electronics manufacturers are expected to be severely affected by the coming global recession, with the slowdown in factory production and the movement of goods, the closure of outlets for consumers, and the sharp deterioration in employment.
Towards a drop in sales
In February, smartphone sales fell 14% worldwide and 40% in China, according to a Hong Kong specialist firm, Counterpoint.
Investors welcomed the figures, with action up 2.5% Tuesday at the opening of the Seoul Stock Exchange. But that was far from enough to offset a drop of almost 20% from a high in January.
At the end of January, far from anticipating the seriousness of the Covid-19 pandemic, Samsung Electronics estimated that it could revive in 2020, as well in electronic chips, its flagship product, as in consumer electronics. He was counting on the deployment in many countries of 5G mobile data transmission technology.