Samsung Electronics posted a massive 60% drop in operating profit in its Q1 2019 financial report. Global weak demand led to such a huge loss for Samsung Electronics. Whereas, Samsung’s mobile department managed to close the quarter in green with an operating profit of 6.2 trillion won ($5.4 billion). Although, it is less than last year’s total profit of 15.64 trillion won ($13.4 billion) and quarterly revenue of 52.4 trillion won ($44.9 billion). In Q1 2018, it reaped 83.3 million shipments bagging 21% of the global smartphone market.
Samsung Galaxy S10 majorly derives the rise in Q1 2019 shipments. The company’s push to increase mid-range sales also led to better results, but it struggled in profitability on a Year-on-Year basis. It saw a decline in China for the fifth consecutive quarter.
“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.
Samsung aims to fully recover from declined sales by bulging its portfolio with innovative products. Devices such as Galaxy S10 5G, Galaxy A80 and other upcoming mid-range devices are expected to improve the sales in Q2 2019. Whereas, for the second half of this year, Samsung has lined up all new Galaxy A series, Galaxy Note 10 among other devices.
On the other hand, Samsung is eyeing on improvement in its Semiconductor business. The company expects the chipsets demand to improve over the last quarter, especially for mobile devices.
“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.
Huawei is giving Samsung a fierce competition in terms of sale and annual growth. The Chinese smartphone maker grew 33% last year, constituting 53.2 million shipments in the previous three months. Apple is at third place with a total market share of 12%.
(via)
