SEOUL • Samsung Electronics said yesterday it expects a gradual recovery in demand for mobile devices and consumer electronics in the second half of the year, but risks remain due to the coronavirus pandemic and growing competition.

Samsung posted a 23 per cent jump in operating profit in the April-to-June quarter on the back of a 13 per cent surge in DRAM memory chip prices. Chip demand came largely from data centres bulking up to support a work-from-home economy and growth in online learning.

Memory chip makers, including South Korea's SK Hynix and Micron Technology of the US, have flagged higher demand from this trend too.

Samsung's operating profit in the second quarter rose to 8.1 trillion won (S$9.31 billion) from 6.6 trillion won a year earlier, in line with its estimate earlier this month.

Revenue at the world's top maker of memory chips and smartphones dropped 6 per cent to 53 trillion won. Net profit rose 7 per cent to 5.6 trillion won.

Samsung said a one-off gain at its display business helped boost its profit, without elaborating further. Samsung's display business counts Apple as a customer.

With stockpiles fuller, Samsung's data centre customers are expected to buy fewer DRAM chips in the second half of the year, arresting the price rise, analysts said.

The company is expected to launch the latest version of its flagship Galaxy device and another pricey foldable phone this year.

Samsung shares rose 1.6 per cent in early trade yesterday, ahead of a 0.7 per cent gain in the wider market. The stock has rallied recently, joining that of rival TSMC, from growing expectations that both companies may benefit from Intel's plan to outsource more chip manufacturing.

REUTERS