Samsung has announced its detailed financial results for Q1 2019, and it’s not looking good so far.
The company managed to earn a revenue of KRW 52.4 trillion and operating profits of only KRW 6.2 trillion out of it. This is a 60% drop in profits compared to the same period from last year.
According to Samsung, the downfall in operating profits this quarter was caused due to weak earnings in memory chips and display panels.
Memory Chips and Display Panels to Blame
Note 1:Â Sales for each business includes intersegment sales
Note 2:Â CE (Consumer Electronics), IM (IT & Mobile Communications), DS (Device Solutions), DP (Display Panel)
Note 3:Â Information on annual earnings is stated according to the business divisions as of 2019
Note 4:Â From Q1 2017, earnings from the Health & Medical Equipment Business (HME) are excluded from the CE Division
The Semiconductor business saw a drop in memory chip prices, and Display Panels also reported a quarterly loss. Samsung explains that this was due to low demands in flexible displays and more market demand for large displays. Though the company claims that the “newly launched Galaxy S10 smartphone logged solid sales” and that future market demand is going to increase for both the S10 and the mid-range A series.
Future Prospects
Looking forward, Samsung expects an increase in demand for memory chips and display panels following the release of flexible displays with their new smartphones (Samsung Galaxy Fold). Further price drops are expected due to tough competition in both TV and smartphone markets, especially with the Chinese tech market continuously releasing high-value-for-money products one after another.
Though it might be tough for the company to recover given all the competition, it still has some time to restore its revenues and produce better overall yearly results. The upcoming (fixed) Galaxy Fold might just be the key.
Wao Feeling Happy :
Apple & Samsung Should Stopped Making Expensive Bekaaar Phone :
Abhi to Starting hai Aghe Aghe Dekho Aur Lose Hoga
Abdul bhai profits drop ki baat ki na ke sale drop ki…………… Abi to samsung start hwa kaam price per mobile launch karna…..
Its 52.4 KRW not $52.4
If company wants to come back in her last profitable position. It should make low price mobile with same quality like oppo and huawei . Otherwise it would be loose market and not compete the other companies like Oppo .huawei.etc