Giant tech company Samsung Electronics Co Ltd (005930) has reported its results for the second quarter of the year recording a 23% increase in operating profit in the quarter ending June 30.
The company attributes this good performance to an increased demand of solid chips caused by global staying and working at home directives due to the pandemic.
Samsung generated an operating profit of 8.1 trillion won ($6.8 billion) in the quarter, this value is far greater than the $5.4 billion which analysts had earlier estimated for the South Korea based tech giant.
This was the greatest quarterly operating profit recorded by the company since the fourth quarter of 2018.
According to Park Sung-soon, a senior analyst at Cape Investment & Securities, staying and working at home orders increased online learning worldwide equally increasing demand of chips which pushed the prices of the chips up.
“Chip demand was stronger than expected due to the COVID-19,” added the analyst.
Another analyst, CW Chung, believes smartphone and Television business performed slightly better than it had been anticipated during the pandemic due to reduced marketing costs and many factories were opened slightly earlier before full reopening of entire economies.
“The damage from the pandemic was less severe than the market had expected,” said Chung giving a reference to the smartphone and TV market.