Skip to main content

Samsung’s Q1 Profits Fall 60%; Galaxy S10 Selling Strong Though

galaxy s10 plus display image

Hit by weak demand in the memory chips and displays department, Samsung Electronics has today reported a massive 60% drop in operating profit (year-on-year) in the first quarter of 2019. The company, however, said the newly-launched Galaxy S10 smartphone lineup is generating solid sales.

Samsung posted an operating profit of 6.2 trillion won (roughly $5.4 billion) – down from 15.64 trillion won (roughly $13.4 billion) last year – and quarterly revenue of 52.4 trillion won which fell 13.5% in comparison to last year’s final quarter. In its official press release, Samsung justified the same saying,

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

On a positive note, Samsung said that it expects limited improvement in the memory chip market in the second quarter as demand will likely 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. Talking about the IT & Mobile Communications (IM) division, Samsung revealed that it shipped 78 million smartphones and five million tablets in the quarter.

However, despite solid sales of the Galaxy S10, overall profitability in the mobile business declined (YoY) as competition intensified in the low- to mid-range segment. Samsung said it will further strengthen its product line-up through innovations, such as Galaxy S10 5G and Galaxy A80 and continued reorganization of its product offerings.

Galaxy A80 Featured ImageFor the second half, Samsung will take the intensified competition head-on and expects its smartphones sales to increase led by new models in all segments from the Galaxy A series to the Galaxy Note amid strong seasonality. The Korean company further adds that “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.”

It means Samsung’s much-awaited foldable device “Galaxy Fold” which didn’t really have the triumphant launch the Korean giant may have expected, with cracking screen left and right, may arrive in the later part of the year. Sales of its premium TVs such as QLED TVs and ultra-large size models contributed to (YOY) earnings growth in Consumer Electronics division, the company added.

Samsung is now banking on a bounce-back for its semiconductor department and higher demand for flexible displays. What are your thoughts on this massive nosedive? Leave us your thoughts in the comments below.

Comments

Post a Comment

Popular posts from this blog

Lenovo IdeaPad Slim 5i Review: A Powerful Workhorse

It’s been quite some time since Intel announced its 11th-gen laptop processors, complete with the new logo design and Intel Iris Xe graphics. And yet, so far I’ve not gotten my hands on a laptop packing the new processor and iGPU. That all changed when Lenovo sent over the IdeaPad Slim 5i (Rs. 61,990) with […] The article Lenovo IdeaPad Slim 5i Review: A Powerful Workhorse was first published on Beebom
Post a Comment
Read more

Twitter Wants to Build an ‘Open and Decentralized’ Social Media Platform

In an attempt to create a Facebook competitor, which everyone flocks to, Twitter became increasingly centralized over the years. Twitter CEO Jack Dorsey believes that’s the case and has now tweeted a lengthy plan to fund research to build an open and decentralized standard for social media platforms. It will “ultimately become a standard” that Twitter’s client will be based upon. Dubbed Bluesky, this project will see a team of up to five researchers , which could include open-source architects, engineers, and designers, being on-boarded in the near future. Currently, Bluesky has no team members but Dorsey tweeted that Twitter’s CTO Parag Agrawal has been tasked with finding a lead. The folks over at Firefox have already extended a helping hand, saying how the non-profit has contributed to decentralization. Enough jibber-jabber, but what exactly is Bluesky? And what does it intend to achieve? Dorsey, in his tweetstorm , states that the challenges being faced by centralized social
Post a Comment
Read more

Mysterious Drones Spotted in Colorado and Nebraska; Sources Unknown

A group of drones was reportedly been spotted in the sky at night last week in Colorado and Nebraska that made the residents anxious and worried. The police officials in charge have no idea regarding where these drones are from. “They’ve been doing a grid search, a grid pattern. They fly one square and then they fly another square,”  Colorado’s Phillips County Sheriff Thomas Elliot told the Denver Post. The drones have an approximate six-foot wingspan and stay 200 to 300 feet away from buildings. At least 17 drones have been spotted till now. They appear at around 7 PM at night and disappear at around 10 PM . Until now, the drones have not been caught doing any illegal or unofficial activities.  “They do not seem to be malicious. They don’t seem to be doing anything that would indicate criminal activity,” Sheriff Elliott added. The Federal Aviation Agency, the Air Force, Drug Enforcement Administration, and US Army Forces Command confirmed that the drones did not belong to them.
Post a Comment
Read more