SamsungNews

Samsung’s Profit Cut in Half

According to recent reports, Samsung Electronics has released its second-quarter earnings results in line with its prior guidance, which is not that great. Reportedly, operating profit fell 56% year-on-year to 6.6 trillion won, the lowest since the company had to deal with the fallout from the 2016 Galaxy Note 7 fire risk, while revenue dropped 4% to 56.13 trillion won.

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Samsung puts its troubles vastly right down to weak market situations for its all-important semiconductor business, despite a small bump in demand for memory. The condition is anticipated to boost somewhat in the second half of the year, though Samsung is warning of external uncertainties, likely a reference to the implications of various international trade disputes.

While the revenue was up 8% at Samsung’s mobile division, profit fell to 42% year-on-year. The company says that the overall phone shipments rose up, with strong sales for mid-range models like the Galaxy A50 along with A70, but the flagship (and more profitable) Galaxy S10 witnessed weak sales momentum during the quarter.

Samsung hopes the upcoming releases of the Galaxy Fold and the Galaxy Note 10 will help its premium smartphone sales, and the company also plans to release more competitive A-series models in the second half of this year.

Meanwhile, the display business is anticipated to boost its performance with higher shipments of OLED displays, with Samsung keeping faith that smartphone makers will opt for thinner panels to mitigate the design constraints of 5G devices.

James J

James has been writing about tech since 2009 after spending 25 years in a computer research lab studying and improving the future of computers. He watches Netflix sci-fi with his pet, enjoying spicy snacks.
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