Samsung has announced its earnings for Q4 2020 and FY 2020 today. It was announced that Samsung’s net profit rose in Q4 2020, while its smartphone sales improved as well. The thing is, smartphone sales did improve, but profit in that area declined. More on that soon.
Samsung Electronics’ profit rose 26.4-percent YoY
The company as a whole has seen a profit rise of 26.4-percent YoY (year-over-year), mainly thanks to strong display and chip demand. The company did better profit-wise in the third quarter last year, but these are still great results.
Samsung Electronics’ consolidated revenue was KRW 61.55 trillion ($55.33 billion), while the operating profit was KRW 9.05 trillion ($8.13 billion) in Q4 2020. For the whole 2020, we’re looking at a revenue of KRW 236.81 trillion ($212.82 billion), and an operating profit of KRW 35.99 trillion ($32.33 billion).
Now, year-over-year, the company’s profit rose 26.4-percent compared to Q4 2019. Compared to Q3 2020, though, its profits fell 26.7-percent. That’s not surprising, considering that memory prices fell, and sales weren’t as good.
In comparison to 2019, Samsung Electronics’ full-year operating profit rose 26.9-percent, while annual sales increased by 2.8-percent. That’s a big win in Samsung’s book, that’s for sure.
Samsung’s smartphone sales have improved, but the profits declined
Now, as mentioned earlier, smartphone sales have increased in Q4 2020, but the profits declined. Samsung says that profits declined due to “intensifying competition and higher marketing expenses”.
The smartphone division’s consolidated revenue was KRW 22.34 trillion ($20.03 billion), and operating profit was KRW 2.42 trillion ($2.17 billion) in Q4 2020. Samsung also noted that it expected weather smartphone and tablet sales in Q1 2021. It does not, however, expects a lower profit margin due to Galaxy S21 sales.
Samsung also confirmed that it will be expanding the Galaxy Z Flip and Z Fold lineups in 2021. It will also expand its 5G portfolio with new tablets and wearables. Do note that the Galaxy Note lineup expansion hasn’t been mentioned, and that probably means the Galaxy Note 21 is not coming, as hinted by tipsters.
If you’d like to know more about the company’s profits and other aspects of the business, feel free to check out the company’s full report.