Samsung reports $12.89 billion Q2 2018 profit, sold fewer Galaxy S9s than expected

The company said that demand for its memory chips has been “robust”

Samsung logo on wall

South Korean electronics giant Samsung used its second quarter 2018 earnings to warn investors that sales of the company’s 2018 flagship Galaxy S9 and S9+ smartphones have been “softer” than expected.

According to a July 31st, 2018 media release, in spite of Samsung’s 11.04 trillion KRW (roughly $12.89 billion CAD) net profit, the company’s overall revenue fell due to “softer sales of smartphones and display panels, despite robust demand for memory chips.”

“Amid the stagnant high-end smartphone market, the IT & Mobile Communications Division reported a drop in earnings, both year-on-year and quarter-on-quarter, over slow sales of the Galaxy S9,” reads an excerpt from the same media release.

Demand also fell for the company’s OLED panels also fell in Q2 2018, while the company reduced the price and fielded less interest for its line of LCD panels.

In spite of low panel demand in Q2, Samsung forecasted “growing demand” for its OLED panels in the remaining two quarters of 2018.

The company believes that interest in its memory chips will “remain strong across all applications thanks to demand for server and PC memory, as well as new mobile product launches.”

“The Company will also strengthen its technological leadership by increasing the portion of 10 nanometer-class products and expanding mass production of 5th generation V-NAND,” said Samsung.

However, Samsung expects that its mobile smartphone business will continue facing challenges in the second half of 2018, due to “pricing competition and new product launches.”

Samsung is expected to announce its Galaxy Note 9 smartphone at the company’s Unpacked event on August 9th, 2018.

Source: Samsung

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