Samsung Electronics’ just-released third-quarter 2020 results are a headwind to current overall economic conditions. Compared to the same period in 2019, net profit increased by nearly 50%, which is also an all-time high for sales in the same period. The announcement came a day after the burial of the late LEE Kun-hee, the second chairman of the Samsung Group, and demonstrates the Korean multinational’s ability to adapt to market changes.
According to our RFI France correspondent Nicolas C, reporting from Seoul on Thursday (October 29, 2020), Samsung is one of the few companies that has successfully taken advantage of the economic situation and geopolitical environment. At a time when its rival Huawei has been hit hard by U.S. sanctions, Samsung knows how to use anti-China sentiment and its competitors to its advantage. Having lost its U.S. supplier, Huawei quickly switched its supply channels to South Korean companies.
50 Billion Euro Turnover
Samsung’s success comes from the launch of two new phones and the easing of marketing costs due to the epidemic. A record high turnover of 50 billion euros was achieved, and in the third quarter came up with a net profit increase of almost 50%. However, analysts believe that the good results of the quarter came from the economic environment and predict that the figures will fall before the end of the year.
The Samsung Group, which accounts for nearly 20 percent of South Korea’s wealth, is a bellwether for the country’s economic situation. Seoul announced two days ago that it has returned to growth after experiencing its first recession in the past decade in the last quarter.
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