Samsung second-quarter earnings reveal softness in Galaxy 9 sales

Samsung Electronics reported second-quarter revenue fell due to softer sales of smartphones and display panels, despite good memory-chip demand. Samsung reported KRW 58.48 trillion in consolidated quarterly revenue, down 4 percent from last year, and KRW 14.87 trillion in quarterly operating profit, an increase of 6 percent.

The company’s strong memory business contributed to higher operating profit, but net profit was little changed from a year earlier due to higher income tax.

The IT & Mobile Communications Division posted KRW 24.0 trillion in consolidated revenue and KRW 2.67 trillion in operating profit for the quarter.

Amid the sluggish premium smartphone market and intensifying competition, Samsung’s smartphone shipments and revenue declined QoQ due to the slow sales of Galaxy S9 and S9+ as well as the phasing out of older low-end models.

The Company posted a drop in quarterly operating profit due to higher marketing expenses. Meanwhile, the Networks Business saw a healthy sales growth as major overseas carrier partners increased investments in LTE expansion.

Demand for smartphones and tablets is forecast to increase in the second half as the market enters a period of strong seasonality, but competition is seen intensifying as new smartphone models are released. In response, Samsung will seek to expand sales by introducing a new Galaxy Note earlier than usual, which offers exceptional performance for a reasonable price. Also, Samsung plans to strengthen price competitiveness and adopt advanced technology in the mass models.

For the full earnings release, click here.