Samsung's profits wobble as smartphone sales decline

Samsung's profits wobble as smartphone sales decline

Meanwhile, mobile communications business vice-president KyeongTae Lee said that while Samsung expects the next quarter's sales environment to "remain challenging", it's making a conscious effort to increase the sales numbers of its flagship Galaxy line with an earlier-than-usual release of the Galaxy Note 9, which will be unveiled on August 9 at the company's Unpacked event in New York City. The company raked in $52.1 billion in revenue (58.48 trillion South Korean won) at today's exchange rates, and it made $13.3 billion in operating profit on that haul (14.87 trillion KRW).

Local analysts estimate the second-quarter shipment of the Galaxy S9 at 8 million units, with the combined sales of 2018 reaching 28 million units.

The company's semiconductor business achieved record operating profits of 11.6 trillion won, however, results missed analysts forecasts for 12 trillion won.

Adding to its troubles, its vice-chairman Lee Jae-yong, scion of the Samsung group's founding family, was jailed past year for his part in the sprawling corruption scandal that brought down former president Park Geun-hye.

The outlook for the memory chip business remains strong across all applications thanks to demand for server and PC memory as well as new mobile product launches.

The company's first foldable smartphone - now dubbed the Galaxy X - is also tipped to breathe new life. While the Galaxy S10 is expected to feature an ultrasonic in-display fingerprint sensor, Samsung may introduce a cheaper optical scanner for its Galaxy A phones.

The official leak comes a week before Samsung's much hyped NY event, where the company is expected to unveil a new Galaxy Note smartphone and had been tipped to launch tablets, a smartwatch, and potentially its first smart speaker.

Shift in EU-US rhetoric, but trade policy unchanged
The U.S.is also in the middle of a trade dispute with China and is threatening to impose new tariffs on the European auto sector. Meanwhile, on Tuesday, the White House said it is preparing a $12 billion aid package for US farmers hit by trade tensions.

Higher expenses in marketing and a poor performance of its S9 flagship smartphone, which came up short of sales targets, weighed on the performance of its mobile business said Samsung.

Samsung, meanwhile, is said to be prepping a better foldable handset than competitors. Samsung is scheduled to launch a new Note early next month. It was Samsung's slowest profit growth for the company in more than a year.

The Galaxy Note 8 was showcased on August 23 previous year and went on sale on September 21.

The smartphone market is overly saturated.

Samsung has been developing several phones for its consumers and it seems it has spread itself too thin doing so. He also thinks Samsung could have a three-generation lead over its rival Apple Inc.'s iPhone when it comes to 5G technology, something that would also help its cause going forward. By segment, the chip business accounted for 6.1 trillion won, followed by the display division with 1.1 trillion won.

Samsung shares were down 0.5 percent in early trading, compared with 0.2 percent drop in the broader market.

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