[Concall] Samsung Electronics "Mid-to-low-end Phone Lineup Optimization, Profitability Improvement Achieved"

[Asia Economy Reporter Han Jinju] At the 2020 Q2 earnings conference call held by Samsung Electronics on the 30th, Lee Jongmin, Executive Director of the Wireless Business Division, explained, "Due to the spread of COVID-19, lockdowns in North America and Europe caused a decrease in demand, resulting in a decline in smartphone sales volume and revenue compared to the previous quarter. However, we were able to maintain solid profitability through reduced marketing expenses such as offline promotions and efficient cost management." He added, "The network business also experienced delays in domestic and overseas 5G investment plans due to the impact of COVID-19."

Regarding the outlook for the second half of the year, he said, "Since June, the smartphone market has been gradually recovering. There are still uncertainties related to COVID-19, and competition among companies to make up for the poor performance in the first half will become even more intense in the second half." He continued, "In the network business, although uncertainties such as adjustments to the 5G investment schedule remain, we will continue to pursue expansion of new orders."

Executive Director Lee stated, "We will respond timely to regional demand recovery by strengthening the lineup of flagship new products and mid-to-low-end models, and continue efforts to improve profits through operational efficiency and cost competitiveness." He explained, "The efforts to optimize the operation of the mid-to-low-end lineup, which have been underway since last year, are leading to visible results in improving model profitability."

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