Samsung Earnings Down on Back of Poor Galaxy S9 Sales

Samsung Galaxy S9 may have been one of the best flagships to come out in 2018 and it improves a lot over its predecessor, but that didn’t help improve the company’s profits.

The Korean smartphone maker just posted its Q2 earnings for 2018 and it was reported many times that Samsung will see a dip in its revenue and that’s exactly what happened.

Posting its slowest growth in over a year, Samsung’s operating profit rose 5.7% year-on-year to about $13.3 billion, making this the company’s slowest growth ever since Q1 2017. The net income was also around $9.8 billion which is almost the same as last year’s. However, sales revenue dropped 4% to about $52.3 billion. The operating profit was also down about 4.9% from the last quarter.


ALSO READ

Galaxy S9 Now Comes in 24k Gold, Crocodile Skin and Platinum Builds


Samsung’s chip-making department, however, posted a record operating profit of $10.38 billion on a revenue of $19.65 billion. The display department posted an operating profit of $125 million on a revenue of $5.07 billion.

The Blame Game

Samsung blames their flagship, the S9 series, to be the culprit of its slowest growth ever in over a year. The S9 suffered from bad sales and didn’t meet the expectations that were set for it. Analysts predict that it might be the worst selling S series flagship by Samsung since the Galaxy S3 which made its debut in 2012.

One of the major reasons for bad sales is the fact that in growing markets, Huawei and Xiaomi are dominating and threatening the likes of Samsung and putting pressure on them to perform better. India and China both have seen Samsung lose its market share over the last year.

Not only is the S9 to blame but Samsung also had trouble with weak demand for its OLED panels, which also saw slow sales. Samsung’s OLED panels are famously used in the iPhone X and the fall in sales of the iPhone X meant lower demands for OLED screens. However, Samsung is hopeful that the demand of OLED panel will increase in the second half of the year and with rumors that Apple plans to launch two OLED iPhone models this year.

It will be interesting to see how Samsung retaliates and gain back the market it once possessed.


  • Samsung ko chahiy S series discountinue kr dy aor Note series ko countinue rakhy

  • Samsung should must suffer for its bad/high rates of product especially sky high spare parts, even apple is much better in terms of it

    Huawei is doing a lovely job for its long term users and very cheap repair and spare parts


  • Get Alerts

    Follow ProPakistani to get latest news and updates.


    ProPakistani Community

    Join the groups below to get latest news and updates.



    >