Samsung’s operating profit grew most actively in the segment of memory chips, but mobile solutions were not responsible for the growth in sales volumes in this situation. In the second half of the year, Samsung expects increased demand for memory due to the release of new mobile devices and game consoles. In the server segment, increased customer inventory could undermine the demand for memory chips.

The display business saw consistent revenue growth in the second quarter only due to a one-off payment from one of its large customers, while its revenue declined 12% YoY. The pandemic reduced demand for new smartphones, and therefore Samsung displays were selling worse. Demand for monitors rose, but TVs sold worse due to the postponement or cancellation of major sporting events.

In the smartphone segment in the second half of the year, uncertainty will remain, according to Samsung, but the launch of new models of its own development on the market may revive demand. Carriers are not actively deploying 5G networks, which also worries Samsung in terms of the potential of the smartphone market. On the other hand, Huawei’s problems with US sanctions offer some opportunities for Samsung to strengthen its market position.

In the consumer electronics segment, the premium segment showed positive dynamics, including household appliances and expensive TV models, as well as air conditioners in general. The publication of the quarterly report of Samsung has raised the stock price of the company by 1.9%, and in just a week it strengthened by 10%. Investors’ optimism was added by Intel’s problems with the development of 7nm technology – it is assumed that Samsung will receive part of orders for the production of Intel products. Bloomberg experts claim that Samsung is already rolling out some 14nm products for Intel.