Samsung Electronics posts $9.9 bn Q2 net profit, down 0.1%

Samsung Electronics posts $9.9 bn Q2 net profit, down 0.1%

Samsung Electronics posts $9.9 bn Q2 net profit, down 0.1%

The Korean won weakened against the USA dollar but rose against the euro and several other key currencies, resulting in a negative impact of net KRW400 billion on the quarterly operating profit compared with the previous quarter. Samsung is frank in calling sales of its flagship smartphones "slow", and the fact that sequential revenues are in decline suggests sales of the new flagship are not picking up. Revenue was down 4% year-on-year, while operating profit rose 6% year-on-year.

The announcement came in line with the guidance report released earlier this month.

"For DRAM, server demand stayed strong owing to the ongoing shift to higher density and expansion of data center infrastructure".

China's Huawei Technologies, which the is the world's third largest smartphone maker, earlier on Tuesday recorded the slowest growth in its first-half sales since 2013.

Samsung is planning on canceling the production on Samsung Note further on.

Samsung's DP business posted operating profits of KRW0.14 trillion on revenues of KRW5.67 trillion for the second quarter.

Some analysts predict the company's operating profit for the next quarter may reach 17 trillion won on the back of continuing demand for semiconductors throughout the year. "Earnings from LCD also declined from the previous quarter as the shipment and average panel price continued the downward trend". That ended six straight quarters of earnings growth.

The IT and mobile communications division posted 24 trillion won in sales and 2.67 trillion won in operating profit for the quarter. The unit saw operating profit fall by 29 percent due to underwhelming sales of its latest flagship smartphone, the Galaxy S9.

Samsung is pushing to launch Galaxy Note earlier this year, since they've already confirmed the launch event which will take place August 9. The phone was launched in 2016 and almost around fifty million units were shipped.

The move comes as the global market for premium smartphones hits a wall, with customers no longer as eager to shell out for expensive devices.

Samsung itself refrained from forecasting chip market conditions next year, but analysts think rising OLED sales could rescue the company's earnings. The largest smartphone brand in the world selling the same smartphones with a different name at a different price for the same consumers. Smartphones accounted for 90 percent of its handset sales, it added. One of the variants is said to offer 512GB storage, a first on any Samsung phone ever.

"Looking ahead, Samsung expects sustained strength in the memory market and growing demand for flexible OLED panels to drive earnings higher in the second half", the company said. Behind the achievement is the company's past investments, as well as a super cycle in the chip industry that drove profits across the sector.

Samsung then said it is preparing the release of micro LED TVs customized for businesses and households, respectively. You can also extend Samsung DeX to an external monitor with a compatible HDMI to USB-C multi-port adapter.

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