Samsung Electronics has seen a healthy bump in its chip sales, especially to data centers that are expanding due to a growing surge of work from home traffic. Although, despite its chip sales, it is unlikely that it will make up for its declining smartphone sales.
Due to the ongoing pandemic, more and more individuals are working from home, which has caused a boom in online learning. This, in turn, reflects in the growth of chip demand. Samsung is the world’s biggest supplier of DRAM and NAND memory chips. These account for nearly half of the South Korean tech giant’s total profits. The rest is mainly from smartphones.
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With the recent increase in demand, a rise in DRAM prices helped the company to maintain a great performance in the second quarter. These price hikes were likely driven by data centers that were stockpiling chips, so the trend is not likely to be sustainable in the near future. However, despite its strong chip sales, the company will not be able to cover up the improved revenue over falling smartphone sales. But the upcoming Samsung Unpacked 2020 event might change the company’s current predicament.
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(Via)