Published: Thu, August 02, 2018
Money | By Michele Stevens

Slumping Galaxy sales lead to weak Samsung earnings

Slumping Galaxy sales lead to weak Samsung earnings

Samsung Electronics has temporarily dipped in the second quarter but will post record earnings in the next three months, said Shinhan Investment on August 1, maintaining a "buy" recommendation and 64,000 won (US$57.26) target price.

In response to this pressure, Samsung is said to be planning a possible game-changer in the shape of the world's first foldable smartphone, due for release early next year. Revenue was also down 20 percent year on year to 24 trillion won.

Samsung previously posted seven successive quarters of profit growth, fueled by high demand and prices within its lucrative memory chip business.

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It will also associate with third party e-commerce companies to help leverage its popularity in apparel and merchandise. Lastly, the company announced that it will be launching its first-ever electric motorcycle, the LiveWire , in 2019.

Net income for Samsung came in at $9.8 billion, up 2 percent from the same quarter past year. But that means Samsung relies on computer chips for an alarming 78 percent of its operating profit. Samsung's overall operating profits slid almost 5% sequentially to KRW14.87 trillion in the second quarter.

Samsung saw weak demand for flexible OLED panels in the second quarter amid the falling shipment and price for LCD panels.

Samsung Galaxy Note 9 base price in Korea will reportedly be the same as the Galaxy Note 8 release price.

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Automatic gunfire has also been heard and an army helicopter has been spotted in the skies. A wounded man takes shelter in a market stall in Harare as protests turned violent.

Samsung's semiconductor business posted record operating profits of KRW11.61 trillion (US$10.4 billion) on consolidated revenues of KRW21.99 trillion for the second quarter of 2018. Appliance sales were low (apparently people aren't buying air conditioners like they used to), but as predicted last quarter, TV sales were strong, "helped by a major global soccer event".

Higher marketing expenses and the disappointing performance of the flagship S9 smartphone, which fell short of its sales target, weighed on its mobile performance, Samsung said. Samsung said it will increase the portion of 10-nanometer-class products and the mass production of 5th-generation V-NAND, while addressing demand for high-density server memory and high-bandwidth memory.

With many excellent handsets now available for several hundred dollars less than its flagships, Samsung is feeling the effects of consumers opting for cheaper models.

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The Senate Appropriations Committee, she said, was making progress and working "closely" with the administration. Both Speaker of the House Paul Ryan and McConnell met with Trump last week to discuss funding the government.

Samsung Galaxy On8 is the latest mid-range smartphone from the South Korean smartphone company. The company said the operating profit from the mobile element of the business showed the steepest decline rate since Q1 of 2017.

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