Sci-Tech

Samsung sees earnings spike in the fourth quarter of 2020

After signing an excellent third year 2020, Samsung Electronics appears to have repeated the feat with a fourth quarter of 2020 (almost) as remarkably. According to the company’s initial estimates, it would have posted 9 billion Korean won in profits, or about 8.22 billion dollars. If this number were confirmed, it would represent an increase of nearly 26% over Q4 2019 results.

Samsung takes off on the stock exchange

It’s a tradition: while Samsung waits to release its final and detailed quarterly balance sheets, it first shares its earnings estimates. The last quarter recorded was no exception to the rule. The Korean manufacturer reported a gain of 9 billion Korean won ($ 8.22 billion) shares in the Korean group on the Seoul Stock Exchange between October and December 2020: + 7.12% in a single day.

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Due in particular to this success, the Chinese manufacturer’s sales would have consolidated to 61 trillion won in the fourth quarter of 2020, which is 2% more than in the same period in 2019. However, Samsung has not done so by detailing which sectors have been most productive.

The shortage of semiconductors may have helped the Korean company

However, we can already bet that the strong demand for DRAM chips has something to do with these results. The world is currently facing a shortage of semiconductors due to the health crisis that forced Chinese factories to close for several months. Many companies are already suffering from the effects of this situation: for example, the factories of Ford and Nissan are idling, and Volkswagen too could find itself in the same situation in a few days.

Huawei also feared a shortage of chips, but for a completely different reason. Since Donald Trump signed a national emergency decree, the Chinese manufacturer has been robbed of its key partners and had to order components directly from Samsung Electronics.

So many conditions that have certainly benefited the Korean manufacturer. At least it was necessary to make up for the losses in smartphone sales at the beginning of the year …

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