Samsung exceeds quarterly revenue predictions despite COVID-19 pandemic

The tech giant's chip sales are expected to soften the impact of the virus

Samsung seems to be rather unaffected by COVID-19 so far, as the company says its Q1 revenue was around 55 trillion won (approximately $63.5 billion CAD).

The South Korean company is one of the first major tech giants to release its quarterly reports since the pandemic started. The earnings show that Samsung has seen a five percent year-over-year increase in revenue.

Analysts suggest that Samsung’s earnings will likely be driven by demand for memory chips. They are expected to perform well since data centres have an increased need for memory chips, and more people are going to require them as they continue to work from home.

Although COVID-19 hasn’t particularly impacted Samsung’s revenue just yet, it will inevitably be negatively affected by store closures and supply chain disruptions. As the pandemic continues to unfold across the world, the impacts will likely be reflected in the upcoming quarterly results.

Back in February, Apple warned investors that COVID-19 was going to impact its production and sales. The tech giant noted that it was not going to reach its forecast for the quarter ending in March.

Source: CNBC, The Verge