Tech giants LG and Samsung reported that their Q1 remained unaffected by an ongoing Pandemic COVID-19. However, they are expecting huge impact in the forthcoming second quarter which is ending in June. The significant cut of the customers has made many other tech companies cautious about their future sales prospect.
Samsung’s net profit in Q1 was slightly affected due to lockdown as compared to the same quarter last year. Thanks to increasing demand of mobile components and chips that kept the revenue up by 5.6% this quarter. The suppliers are restocking smartphone accessories along with memory chips due to uncertainty in supply prevailing globally at this time.
“It will take the real economy some time to fully recover”,said Jong-min Lee, Samsung’s vice president of the smartphone business.
Samsung along with other tech companies warns about the threat in decline in demand for core products like smartphones and TVs in the current quarter. Samsung expects the pandemic to take its toll on future results. During this lockdown, the global economy has suffered a lot and drop in sales caused a huge loss to the companies.
With stock markets in flux, and countries barely beginning to flatten the curve sufficiently to consider restarting their economies after COVID-19, the future is difficult to foresee.