Samsung Reports Loss in Revenue Due to Softer Sales of Smartphones and Display Panels

South Korean electronics company, Samsung posted 14.9 trillion won ($13.3 billion) in operating profit for the second quarter that ended on June 30 as revenue fell 4%to 58.5 trillion won ($52.2 billion) from a year earlier, the company announced. The consolidated net profit was 11.04 trillion won ($9.85 billion). “Second quarter revenue fell due to softer sales of smartphones and display panels, despite robust demand for memory chips,” said the South Korea-based giant. The chip business continued to deliver strong earnings, driven by demand for DRAM chips used in data centres and NAND flash memory for high-capacity storage, amid a softening of NAND prices.

samsung-revenue-loss-smartphones

In the display business, the company saw weak demand for flexible OLED panels in the second quarter while the shipment and price for LCD panels also fell, as reported by IANS.

Amid the stagnant high-end smartphone market, Samsung reported a drop in earnings, both year-on-year and quarter-on-quarter, over slow sales of the Galaxy S9 and S9+ premium smartphones.

The network business, however, achieved solid growth led by investments in LTE networks by key global customers.

The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches, said Samsung.

“The company will respond through the early introduction of the Galaxy Note and competitive mid- and low-end models with new features,” it added. In mobile, the demand for high-density storage for new smartphones and high-end models is likely to remain robust.

“In mobile, in addition to new flagship smartphone launches, memory content is projected to increase in mid-range models as they begin to support high-specification mobile games, on-device AI and dual camera features,” said Samsung.

Demand for smartphones and tablets is forecast to increase in the second half as the market enters a period of strong seasonality, but competition is seen intensifying as new smartphone models are released.

Following a successful restructuring of its product line-up, Samsung led the expansion of the premium TV market, winning more than 50% market share in the ultra-large screen segment of 75-inches and above.

Looking to the second half, the TV market is projected to grow YoY, especially in developed economies, said the company.

“Looking ahead, Samsung expects sustained strength in the memory market and growing demand for flexible OLED panels to drive earnings higher in the second half,” the company added.

Read more on:

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

4
Leave a Reply

avatar
Photo and Image Files
 
 
 
4 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
4 Comment authors
Kaushik IMAThamilan BaaThamilan daaManoj Singh Recent comment authors
newest oldest most voted
Kaushik IMA
Kaushik IMA

What Samsung needs to be aware of is their fast falling, going to 3rd class quality control. Bought a Samsung Galaxy A6+ from a shop; microSD card slot was dead out of the box. Nothing I did could fix it. Trying to get DOA certificate from Samsung was like trying to get appointment from PMO. I have never head a phone “partially DOA” like I did with this Samsung; moreover, I found that an entire batch of A6 and A6+ seem to have this problem (made on a particular day in June 2018). In past years I have seen such… Read more »

Thamilan Baa
Thamilan Baa

Samsung should beware of Huawei, since they are catching up fast.
Huawei’s revenue is around 48 billion $ during the same period…

Recent Posts

Netflix Prepping to Launch Cheaper Mobile-Only Plan in India to Increase Subscriber Base

A few months ago, we reported that Netflix is testing a cheaper mobile-only plan of Rs 250 that allows users...

Reliance Jio Postpaid Plans Almost Twofold Cheaper than Plans From Other Telcos: CLSA

The distinction between the postpaid plans being offered by the likes of Vodafone Idea and Bharti Airtel and the Mukesh...

Samsung Galaxy Note 10 May Not Feature Qualcomm Snapdragon 855 Plus Chipset

Samsung’s next flagship, the Galaxy Note 10, may not feature Qualcomm’s latest gaming-centric Snapdragon 855 Plus chipset. While the international...