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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

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samsung foldable phone
FILE - The Samsung Galaxy Fold phone is shown on a screen at Samsung Electronics Co. Ltd.’s Unpacked event in San Francisco, Feb. 20, 2019. Samsung says it will look into some reports of flickering or cracking screens. VOA

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.

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“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)

Next Story

Samsung Aiming to Provide Innovative Services This Festive Season

Samsung has also announced a wide range of exclusive deals, offers and assured gifts across its large product portfolio, valid till October 31

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samsung
To get ahead in the fast-changing tech industry, Samsung said it will expand investment in burgeoning tech segments to propel growth. Wikimedia Commons

With a network of over 3,300 service points including 535 customer service vans, Samsung is aiming to provide premium products’ quick installation facility in major cities this festive season.

The company said in a statement on Wednesday: for availing the service, that will cater to installation facility within four hours of delivery, customers have to buy premium products such as Samsung TVs (55-inch and above), Wind-Free ACs.

“Our new service offering, Live Chat along with Remote Support are part of our strategy to deepen our consumer connect and further our brand love. We wish everyone a very happy and prosperous festive season,” said Sunil Cutinha, Vice President, Customer Service, Samsung India, in a statement.

Samsung, Apple, Manufacturing, India
Apple and Samsung are very big players, they can change scenarios for private sector manufacturing. LifetimeStock

According to the company, the service centres have over 10,000 specialist engineers trained at Samsung’s in-house training academies.

Consumers can also seek priority services by simply booking an appointment online and schedule a visit to their nearest service centre at a convenient day and time.

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The company is also providing interactive repair facilities for Samsung phones at all
service centres across India. Repairing will be provided in front of the customers to maintain the transparency in the process.

Samsung has also announced a wide range of exclusive deals, offers and assured gifts across its large product portfolio, valid till October 31. (IANS)