It is that time of the year when company’s post their financial results for the second quarter and first half of the year. Electronics giant, Samsung has published its financial result for the second quarter of the year spanning April to June. The company had earlier this month posted guidance which predicted how the company would fare. The financial result isn’t any different from the actual financial result.
The most noteworthy aspect is that Samsung’s operating profit fell by 56% year over year, peaking at KRW 6.6 trillion ($5.56 billion). This is way lower than the KRW 14.87 trillion ($13.3 billion) the company got in Q2 2018.
Apart from the general slump in revenue, Samsung’s mobile phone business also saw a 42% decrease in profit due to slow sales in the flagship sector. This is despite an increase in total smartphone shipments. However, revenue from the mobile phone sector was up 8% as a result of solid sales from the midrange A-series models.
Further, the semiconductor business also continued its sluggish growth as a result of weak demand and slumping prices in the memory chip market. The company racked in KRW 16.09 trillion ($13.6 billion) in revenue compared to KRW 21.99 trillion ($18.59 billion) YoY. Samsung expects demand for NAND and DRAM components to increase in the second half of 2019. Thus, it is eyeing a recovery for the semiconductor business.
Samsung Display also continued its winning ways as the company racked in KRW 7.62 trillion ($6.64 billion) in profits, a significant improvement over last year’s Q2 revenue of KRW 5.67 trillion ($4.79 billion). The mobile phone industry is presently experiencing a shift to OLED panels for flagship models. Samsung will be one of the major beneficiaries of this development.
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