Technology companies continued to achieve positive results despite the second wave of Corona during the third quarter of 2020, thanks to the jump in sales.
Despite the decline in iPhone sales, Apple’s profits exceeded expectations, and Samsung’s profits, thanks to smart phone sales, increased by about 50%, and Finnish Nokia doubled its profits despite the challenges it faces in the field of research and development.
Apple’s profits exceed expectations
US tech giant Apple announced, on Thursday, revenue and profits that exceeded Wall Street expectations as it continued a boom in its sales of Mac computers and accessories such as AirPods, which helped offset a drop in iPhone sales.
The Cupertino-based company said that revenues and profits for the fourth quarter of its fiscal year ending on September 26 were $ 64.7 billion and 73 cents per share, compared with analyst estimates of $ 63.7 billion and 70 cents per share.
IPhone sales fell 20.7 percent to $ 26.4 billion, a drop more sharply than analysts’ expectations, which had indicated a decline of 16.2 percent.
Apple said that its revenue from the accessories segment jumped 20.8 percent to $ 7.9 billion, while analysts’ estimates were pointing to an increase of 13.5 percent to $ 7.4 billion. Mac and iPad sales rose to $ 9.0 billion and $ 6.8 billion, compared with estimates of $ 7.92 billion and $ 6.12 billion.
$ 8.2 billion in net profit for Samsung
Samsung Electronics’ sales reached a quarterly record, supported by a rebound in its sales in mobile phones and home appliances thanks to increased demand in light of the Coronavirus pandemic and good performance in the chip sector against the backdrop of US sanctions on the Chinese company Huawei.
The company’s net profit during the third quarter of this year rose by 49% annually to 9.36 trillion won ($ 8.2 billion), according to the giant company in a statement.
Samsung Electronics’ revenue during the same period increased 8 percent to 67 trillion won.
The company indicated an increase in its sales of smartphones by nearly 50% from the previous quarter, with the launch of its phones such as the Galaxy Note 20, Galaxy Z-Fold 2, and others.
South Korea’s Yonhap News Agency quoted the company as saying that its third-quarter sales reached 66.9 trillion won ($ 59 billion), up 8 percent year-on-year, setting a quarterly record since it hit 65.9 trillion won in 2017.
Its operating profit jumped 58.85 percent year on year to 12.3 trillion won in the third quarter of this year, marking its best quarterly performance since the third quarter of 2018 when it reached 17.5 trillion won.
Experts expect that Samsung’s performance in the fourth quarter will be weaker than that of the third quarter, on the back of the suspension of the supply of Huawei with chips, the decrease in chip prices, as well as the increase in promotional expenditures for mobile phones with the launch of its rival Apple its latest products.
Nokia’s profits more than doubled
Finnish mobile phone company Nokia announced that its third-quarter profit more than doubled, to 203 million euros ($ 238 million).
Nokia recorded a net profit of 87 million euros during the period July to September 2019.
Sales decreased by 7% during the third quarter compared to the same quarter of last year, to reach 5.3 billion euros.
“The company’s financial performance in 2021 is expected to be full of challenges,” said CEO of the company, Becca Lundmark, adding, “We have to strengthen investments in research and development to ensure leadership in the fifth generation.”
Nokia faces fierce competition from rivals such as Huawei of China and Ericsson of Sweden.
The company indicated that there are no factories for it currently closed due to the Corona virus.
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