Samsung's sales increase at the sight of Huawei's problems

Samsung's profit increased by 58%

In Q3 2020, Samsung posted profit growth of 58% year-on-year to 12.3 trillion won ($ 10.6 billion). In the same quarter last year, this figure was 7.78 trillion won. This is more than the 10.5 trillion won that the market analysts predicted.

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Consolidated sales were around 66 trillion won, around 6.5% more than 62 trillion won a year ago.

Samsung smartphone sales up

Although Samsung itself did not indicate the breakdown of individual sales segments, analysts clearly say that smartphones are primarily responsible for such an impressive growth.

In my opinion, a large proportion of these are smartphones whose sales have increased significantly. We had the opportunity to talk to company representatives this morning and it looks like they were very, very strong in Q3.

Mark Newman of the research firm Bernstein said.

Interestingly, Newman also pointed out that there was an increase in demand for flagships, including the Samsung Galaxy Note 20, and it was also doing well in the initial sale of the foldable Samsung Galaxy Z Fold 2.

Other products, including consumer electronics and home appliances, are also responsible for Samsung's excellent financial results in Q3 2020. This is also due to the improvement of Samsung's cost structure and the transition to online marketing platforms, which was forced by the COVID-19 coronavirus pandemic.

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Samsung was helped by Huawei's problems

It's no secret that Huawei has had big problems for a long time. First, no Google services, then problems with Kirin processors. Intel's problems also added to this, the new processors will include slippage.

To this must be added Huawei's troubles on the 5G device market, which Samsung also uses - for example by signing a contract for $ 6.6 billion with the Verizon network.

As you can easily guess, Huawei's problems create a hole in the market that other companies fit into - including Samsung, which is certainly taking over some of the customers. This year, the Chinese company made some really successful smartphones, but reading the comments on the web, it is clear that people are very skeptical about system limitations and the lack of access to Google services - no matter how much promotion, money and bonuses Huawei offers in its AppStore, many people give up their equipment, even seeing attractive prices. And if they don't want to go to Apple's camp, then they have to pick something on Android - and then they go to Samsung. But also Xiaomi, which is also very confidently ahead this year and is noting an increase in smartphone sales.

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Will Samsung's sales growth continue? There are suspicions that it is - because of the problems of Huawei, which still has not resolved the issue of new processors, so next year's models are in a big question mark and it is hard to expect a standard publishing calendar made by a Chinese manufacturer. And even "loyal" customers will encourage them to look around for an alternative smartphone. And Samsung will add a strong promotion of its devices to this, for example in Poland, it may turn out that photos with Robert Lewandowski's loaded Huawei equipment will not help.

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