Samung releases Q2 2019 earnings with lowest profit figures since Galaxy Note 7

Samsung's Q2 operating profit dropped 56 percent year-over-year

Samsung released its second-quarter 2019 earnings results and, much like the first quarter, things aren’t looking good for the South Korean company.

Samsung’s operating profit has dipped 56 percent year-over-year to 6.6 trillion Korean Won (KRW), or roughly $7.3 billion CAD — the lowest since the Galaxy Note 7 disaster in 2016.

Revenue also dipped four percent to 56.13 trillion KRW (approximately $62.3 billion CAD).

At first glance, Samsung’s mobile division looks good, posting a revenue increase of eight percent. However, the year-over-year profit for Samsung Mobile is down 42 percent.

Samsung says overall phone shipments increased due to a boost in mid-range sales, but flagships like the Galaxy S10 and S10+ suffered “weak sales momentum” in Q2.

Another reason for the slump, according to Samsung, is the weak memory chip market. Despite a recent increase in memory demand, prices have fluctuated.

Samsung still says memory demand will improve in the latter half of the year, but it issued a warning about “external uncertainties,” likely meaning certain global trade disputes.

Ultimately, Samsung is pinning its hopes on the launch “innovative new products” like the upcoming Galaxy Note 10 and the Galaxy Fold. Further, the company has more aggressively targetted the mid-range market. Hopefully, it can help improve earnings for Q3.

Source: Samsung Via: 9to5Google

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