Monday May 27, 2019
Home Lead Story Samsung Profi...

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

0
//
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.

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)

Next Story

OPPO, Samsung, Apple Most Preferred Brands by Gen Z

However, few consumers are looking to replace their existing brands because of recurring problems

0
Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Gen Z users are looking for smartphones that deliver superior consumer experience with premium tech innovations at entry-level prices, and OPPO, Samsung and Apple are the top three brands that find favour with consumers, a new survey said on Friday.

At least 78 per cent Gen Z consumers see smartphones as a symbol of their lifestyle while 75 per cent feel the devices make them feel powerful in life whereas 72 per cent said they offer them “superior experience through the latest tech innovations”, CyberMedia Research (CMR) has said.

The survey was conducted on smartphone consumers in the premium smartphone segment (from Rs 25,000 to Rs 50,000).

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

“Smartphone brands that provide a compelling consumer experience, backed by industry-leading innovations, and a premium experience at good price-points, will find favour with demanding consumers.

“The Gen Z clearly identifies with OPPO as an innovation trailblazer whether it be in camera or battery charging,” Prabhu Ram, head of Industry Intelligence Group, CMR, said in a statement.

Also Read: US President Donald Trump Raises a Possibility of Huawei Being a Part of US-China Trade Deal

The survey said that smartphone upgrades are driving the market, with 55 per cent of the consumers indicating that they upgrade their smartphone every year.

However, few consumers are looking to replace their existing brands because of recurring problems. (IANS)