Samsung confirms slow Galaxy S9 sales in quarterly report

Isaac Cain
August 2, 2018

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.

The South Korean tech giant said its second-quarter net income stood at 10.98 trillion won (US$9.8 billion), up 2 percent from 10.80 trillion won a year earlier. Samsung's smartphone revenues, by contrast, plunged 20 percent on-year to W24 trillion, and operating profit nosedived 35 percent to W2.7 trillion.

The profit growth in the memory chip business began to stabilize this year but it is still the lion's share of Samsung's bottom line. In particular, the semiconductor sector will gain from shipment increase and rise in average price of DRAM while display unit will enjoy surge in operation ratio of flexible OLED.

In its recent quarterly earnings report, Samsung blamed falling revenue partly on "slow" sales of its Galaxy S9-something it says is the result of more competition from new smartphone models. As in the intro video, Samsung focuses heavily on two main areas to entice potential buyers - the Galaxy Tab S4 as an entertainment device and as a productivity tool.

"The year's second half is generally a peak season so smartphone and tablet demand is expected to go up", Samsung said. "The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches".

"The company will respond through the early introduction of the Galaxy Note and competitive mid- and low-end models with new features", it added.

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"At Samsung, we believe tablets play an increasingly important role in making lives easier and improving the mobile experience for everyone", said DJ Koh, President and CEO of Samsung Electronics.

On the basis of this trend and its unrivalled dominance in several businesses, industry analysts expect Samsung to have a lead on Apple in terms of margin for the entire year.

An average of estimates compiled by Bloomberg News had forecast 11.6 trillion won for the period.

Despite its difficulties in the mobile sector, the company is expected to post record profits in the next quarter thanks to its semiconductor division, analysts told AFP.

Looking to the second half, the TV market is projected to grow YoY, especially in developed economies.

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