At its Q2 2020 earnings call on Tuesday, Samsung Electronics announced that it posted 52.97 trillion won ($44.5 billion) in consolidated sales and 8.15 trillion won (6.8 billion) in operating profit. The results were driven primarily by higher demand for memory chips and cost optimization amidst the COVID-19 pandemic. The profits also include a one-time gain at its display panel business, the company said.

Quarterly operating profit rose 26% from the previous quarter and 23% from a year earlier. However, overall revenues fell 4% QoQ and 6% YoY due to reduced sales of smartphones and other devices. Earnings from the memory business was driven by increased demand from datacenters and PCs. However, slower demand for mobile memory resulted in weaker NAND bit growth, the company said.

Despite weaker smartphone sales during the quarter, Samsung’s Mobile Communications Business reported solid profitability on marketing cost reductions and other cost optimizations. The Consumer Electronics Division posted higher earnings over growing sales of appliances such as air conditioners and dryers. Premium QLED TVs also sold well during the quarter. Audio division, Harman, however, reported an operating loss amidst deteriorating market conditions in the global auto industry.

In the second half of 2020, Samsung Electronics expects a gradual recovery in demand for mobile devices and consumer electronics. Both TVs and digital appliances are expected to see better sales compared to the first half of 2020. Sales are likely to be driven by pent-up demand following COVID-19 lockdowns, as well as year-end holiday spending.

In an official press release announcing the results, Samsung said: “While risks remain due to persisting uncertainties from COVID-19 and growing competitions, the Company will respond to reviving demand through flexible global supply chain management (SCM) to ensure stable supply to customers”.