Tuesday, January 26, 2021
Home Lead Story Samsung Profits Falls 60%: Report

Samsung Profits Falls 60%: Report

Sales of premium TVs such as QLED TVs and ultra-large size models contributed to the (YOY) earnings growth in the Consumer Electronics (CE) division

Hit by weak demand in the memory chips and displays, Samsung Electronics on Tuesday reported a massive 60 per cent drop in operating profit (year-on-year) in the first quarter of 2019.

The company, however, said the newly-launched Galaxy S10 smartphone is generating solid sales.

It shipped 78 million smartphones and five million tablets in the quarter.

Samsung posted operating profit of 6.2 trillion won (nearly $5.4 billion) – from 15.64 trillion won (roughly $13.4 billion) last year — and quarterly revenue of 52.4 trillion won which fell 13.5 per cent.

“The Semiconductor business saw a drop in memory chip prices as inventory adjustments continued at data centre companies, while demand for high-density memory for mobile phones increased thanks to new flagship smartphones,” said the South Korean giant.

Samsung said it expects limited improvement in the memory chip market in the second quarter, as demand will likely begin to improve for major applications such as mobile products but price declines will likely continue.

The display panel business reported a quarterly loss due to decreased demand for flexible displays and increasing market supplies for large displays.

samsung, tablet folded phone
The new Samsung S10 phones are displayed Feb. 20, 2019, in San Francisco. Samsung is hailing the 10th anniversary of its first smartphone with three new models that it hopes reverses a sales slump in an industry recycling the same ideas. VOA

In the IT & Mobile Communications (IM) division, despite solid sales of the Galaxy S10, profitability in the mobile business declined (YoY) as competition intensified in the low- to mid-range segment.

Samsung said it will strengthen its product line-up through innovations such as Galaxy S10 5G and Galaxy A80 and continued reorganization of its product offerings.

For the second half, despite intensified market competition, Samsung expects smartphone sales to increase led by new models in all segments from the Galaxy A series to the Galaxy Note amid strong seasonality.

Also Read- Google’s Parent Company ‘Alphabet’ Stock Down 7% Over Slow Ad Growth

“In the premium segment, the company will strengthen its leadership through the new Galaxy Note as well as its innovative products such as 5G and foldable smartphones,” Samsung said.

It means that Samsung’s much-awaited foldable device “Galaxy Fold” that met with cracking screen controversy may arrive in the later part of the year.

Sales of premium TVs such as QLED TVs and ultra-large size models contributed to the (YOY) earnings growth in the Consumer Electronics (CE) division, the company added. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Study: Rise In Benign Prostatic Hyperplasia Problems During Winter Session

Benign prostatic hyperplasia (BPH), also known as prostate gland enlargement is a common condition that older men tend to suffer more during those chilly...

Should Resident Indian Be Proud Of American Indians?

BY N.S.Venkataraman From time immemorial, people have been migrating from one country to another. When India was ruled by the British, thousands of poor Indians...

Things To Consider To Create A Profitable Mobile Game

BY JAMES NAGEL There are lots of people who at some point in their life decided to develop a mobile game, which indeed can be...

Green Tax To Be Levied On Polluting Vehicles: Transport Ministry

The Union Minister for Road Transport and Highways Nitin Gadkari on Monday said his department has approved a proposal to levy "Green Tax" on...

38% Indian Women Techies Prefer WHF

Almost 38 per cent Indian women working in a tech or IT industry prefer working at home to working in the office, says a...

Telangana Boy Develops Smart Wristband Aiding Alzheimer’s

A 13-year-old boy from Telangana, who developed a smart wristband to monitor Alzheimer's patients, is one of the recipients of Pradhan Mantri Rashtriya Bal...

Diwali 2022 Opens Doors To An Extended Temple In Dubai

A new Hindu temple in Dubai, the foundation stone of which was laid last August amidst the pandemic, will open its doors to worshippers...

Changing Mood In Ayodhya Chronicled In New Book

Fear, apprehension and suspicion has finally been replaced with a sense of ease and excitement and Ayodhya, after the Supreme Court verdict - is...

Recent Comments