Samsung blames 56 per cent slump in profits on 'weak' memory sales | MU Message Board Posts

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Msg  12765 of 12774  at  7/31/2019 9:25:55 AM  by

jag24


Samsung blames 56 per cent slump in profits on 'weak' memory sales

The Galaxy S10 hasn't been flying off shelves either

WE ALL HAVE DAYS where our memory isn't quite up to scratch, but for Samsung slow sales of its memory, along with its flagship phones, has seen its profits sliced in half.

Sammy's operating profit took a 56 per cent tumble to 6.6 trillion won (£4.5bn) for its 2019 second quarter. Revenue also dropped by four per cent to 56.13 trillion won (some £39bn); you can hear the tiny violins scraping away.

The blame for this decline is being levied at Samsung's semiconductor arm, with the South Korean tech giant noting that "weakness and price declines in the memory chip market" is affecting its bottom line, despite increased demand for memory chips.

Samsung reckons things will look rosier for its semiconductor arm as the year rolls on, but did warn that things like "external uncertainties" - potentially trade problems and disputes - could pose challenges ahead.

While Samsung said it's flogging plenty of TVs and OLED panels for mobile displays, its smartphone division hasn't been showering itself in glory. Profits fell by 42 per cent, despite sales having increased by eight per cent. This looks to be down to "weak sales momentum" of the flagship Galaxy S10, which despite being a stellar phone, is very pricey and potentially out of the reach of a lot of people; we'd recommend the Galaxy S10e for a more 'affordable' take.

But at least Samsung is taking that on the chin and will keep knocking out premium phones.

"In the third quarter, Samsung will focus on successful launches of new innovative products - the Galaxy Note 10 and Galaxy Fold," the company said.

"It will enhance the 5G smartphone lineup to take the lead in the new market and introduce more competitive A series models in the second half to extend the ongoing positive momentum in mass-market smartphone sales."

So all in all, unless you're an investment fat cat, there's no point shedding tears for Samsung, which still appears to be in rude health. µ

https://www.theinquirer.net/inquirer/news/3079854/samsung-q2-2019-earnings-memory-market-weakness



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