Samsung profit misses estimates as growth stalls in smartphones

Adjust Comment Print

The Korean won weakened against the United States dollar but rose against the euro and several other key currencies, resulting in a negative impact of net KRW400 billion on the quarterly operating profit compared with the previous quarter.

Revenue slipped 4% to 58 trillion won, also in line with previous estimates.

In an industry known for its earnings-report doublespeak, Samsung's straightforward acknowledgment that its device sales are falling behind is refreshing.

The local currency's weakness to its major peers, except the greenback, negatively influenced a net 400 billion won (358 million USA dollars) worth of operating profit compared with the prior quarter.


THE WORLD'S biggest smartphone maker has apparently "spoiled" some of its own forthcoming announcement overnight, as Samsung revealed video and details about two new tablet computers.

For the second half of 2018, he admitted that "new model launches and intense price competition in the mobile business are likely to keep conditions challenging". The memory business achieved strong results despite weak seasonality, as overall demand growth was solid, driven by servers for data centers.

Samsung Electronics has unveiled the latest in its flagship 2-in-1 Android tablet line-up, the Galaxy Tab S4, which offers a slew of new options for consumers thanks to it being able to connect with Samsung DeX.

Samsung's smartphone revenues, by contrast, plunged 20 percent on-year to W24 trillion, and operating profit nosedived 35 percent to W2.7 trillion.


Samsung Display, the display manufacturing unit of Samsung, is also working on unbreakable OLED panels. That ended six straight quarters of earnings growth. Revenue in Samsung's mobile division declined 22 percent in the quarter to 22.67 trillion won ($20.2 billion).

Amid the sluggish premium smartphone market and intensifying competition, Samsung's smartphone shipments and revenue declined QoQ due to the slow sales of Galaxy S9 and S9+ as well as the phasing out of older low-end models. Also available on the Galaxy S9, S8, and Note 8 smartphones, DeX essentially transforms your mobile device into a desktop computer.

The shipment of the Galaxy S8, released in 2017, came to 37.5 million units on its first year, while that of the Galaxy S7 hit 48.5 million units in 2016. During the Apple Q2 2018 earnings, the company's forecast for Q3 2018 is sales of $62 billion and an operating profit of $15.8 billion. Smartphones accounted for 90 percent of its handset sales, it added. Slated to be launched at Samsung's Galaxy Unpacked event on August 9, the smartphone maker has started taking pre-registrations for the forthcoming device.


Comments