Samsung Electronics has reported a Q2  operating profit of $6.86 billion up 26% sequentially and 23% y-o-y.

Samsung Q2 profits up 26%; semi capex budget $12.4 billion

The profits growth came mainly from chips and displays.

Revenue was $44.5 billion down 4% sequentially any and 6% y-oy.

The company’s semiconductor capex budget this year is $12.4 billion.

Earnings from Samsung’s memory business improved in Q2, led by  demand from datacentres and PCs.

Slower demand for mobile memory resulted in weak NAND bit growth.
 
In H2 Samsung expects a gradual recovery in demand for mobile devices and consumer electronics. 

Demand for mobile and graphic memory is expected to recover in H2 driven by new smartphones and game consoles. 

The company will focus on expanding sales of key products such as high-resolution sensors and 5G SoCs.

A Q4 rebound in earnings from mobile displays is expected with a  Q3 recovery in mid and low-end mobile phone demand.

For large-sized panels, the company will accelerate development of quantum-dot (QD) displays as planned.

Samsung plans to introduce new flagship smartphones including the Galaxy Note and a foldable phone in the second half of 2020