Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Samsung's profit halves from slow memory and flagship sales

Samsung's profit halves from slow memory and flagship sales

Samsung Electronics released its second quarter earnings results in line with its previous guidelines, which means they are not large. Operating profit fell 56 percent year-on-year to 6.6 trillion won – the lowest since the company had to cope with the Galaxy Galaxy 7 fire risk drop in 2016, while revenue slid 4 percent to 56.13 trillion won.

Samsung is greatly complicating its problems to the weak market conditions for its most important semiconductor business, despite a slight blow to memory demand. The situation is expected to improve by the second half of the year, although Samsung warns of "external uncertainties", possibly a reference to the effects of various international trade disputes.

While revenue increased 8 percent with Samsung's mobile division, revenue dropped 42 percent year over year. Samsung says overall phone shipments have increased with strong sales for mid-range models such as the Galaxy A50 and A70, but the leading (and more profitable) Galaxy S1

0 has experienced "weak sales momentum" in the quarter.

Samsung hopes that the upcoming launch of the Galaxy Fold and Galaxy Note 10 will help its sales on premium smartphones, and the company also plans to release "more competitive Series A models" in the second half of this year. In the meantime, the display business is expected to improve its performance with higher shipments of OLED displays, with Samsung believing that phone makers will choose thinner panels to mitigate the design constraints of 5G devices.

Source link