Samsung recently announced the financial results for the fourth quarter of 2020 and the complete fiscal year and the numbers looked very impressive for both the periods. The company had around 26% increase in profit just for the period of October to December in comparison with the same three months in 2019. The sales increased slightly around 3%.
Samsung saw around 30% increase in profit for the whole year of 2020 that was disrupted because of the Covid-19 pandemic and the sales improved by KRW6 trillion on a yearly basis but a quarter of the profits were removed because of the “aggressive” exchange rate between the Korean won and the US dollar.
The mobile division saw a decrease in sales as well as operating profit during the holiday period. The fourth quarter of 2020 saw only around KRW2.4 trillion profit and that was 34% less than the fourth quarter of 2019 and Samsung said that this was mainly because of weaker sales and market spending. But the yearly results are in line with expectations that followed continued efforts to optimize costs.
If we look ahead, the first quarter of 2021 may be slow for the complete smartphone market. Still, Korean company expects revenue as well as profit to rise following the early introduction of Galaxy S21 series and also the product mix improvement. Samsung earned profit mainly from the display business in 2020 and the division posted the highest sale of mobile phone panels and there was an increase in TV screen prices that led to a sharp increase in cash flow. For the next three months, Samsung is sure that their performance will be strong because consumers are adopting more and more OLED panels.