While the pandemic continues to rage, consumers are buying phones(samsung m31) and other electronics again.


The pandemic-caused lull in demand for phones appears to be over, at least for Samsung. The company on Wednesday reported its highest-ever quarterly revenue, thanks to a "significant increase in consumer demand" for its smartphones, computers and other products. (Samsung m31)

The company reported its third-quarter operating profit soared 59% from the previous year to 12.35 trillion won ($10.9 billion), while its net profit jumped to 9.36 trillion won ($8.2 billion) from 6.29 trillion won. Sales climbed 8% to 66.96 trillion won ($59 billion), better than the 64.7 trillion won ($57 billion) expected by analysts polled by Thomson Reuters (Samsung m31)

Samsung may be known as a giant in phones and TVs, but it also has huge businesses making components like memory chips. The company has counted on its components business to buoy its revenue, while its other electronics have struggled. Since the novel coronavirus pandemic began, Samsung's chip business has gotten a boost from data centers that rely on the technology to store everything we're doing online. But the smartphone sector boomed back in the third quarter, both in terms of handset sales and the memory chips used in those devices. 

"Overall market demand increased in the third quarter as stimulus measures helped many economies recover following lockdowns during the second quarter," Samsung said. "The company's smartphone sales rose sharply from the previous quarter, with the launch of new flagship models such as the Galaxy Note 20 and Galaxy Z Fold 2, as well as stronger sales of mass-market models in key regions including India."(samsung m31)

A phone rebound

2020 was supposed to be a strong year for the phone industry, as innovations like 5G and foldable screens got people shopping again. Instead, financial struggles and worries about COVID-19 will limit the number of devices companies can make and how many phones people will actually buy (Samsung m31).

Samsung was one of the first companies to release a phone with 5G, but it's been surpassed by Huawei. The Chinese handset maker became the biggest smartphone vendor in the world in the second quarter, the first time in nine years that Samsung or Apple hasn't held that title. And analysts expect Apple to become the world's second biggest 5G phone vendor this year -- with less than three months of sales. That puts Samsung, once the leader with the new connectivity, in third place.