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SEOUL, Korea, Republic Of – Samsung Electronics Co. reported a lower-than-expected gain in the second-quarter earnings Tuesday, showing an end to its record-breaking streak of financial results as sales of smartphones and display panels
The result: The South Korean tech giant said that its April-June net income stood at 10.98 trillion won ($ 9.8 billion), up 2 per cent from 10.80 trillion won a year earlier. FactSet
Sales fell 4 per cent to 58.48 trillion won ($ 52.3 trillion) while operating income advanced 6 per cent to 14.87 trillion won ($ 13.3 trillion won),
The latest results indicate an end to Samsung's streak of record-breaking financial results that stunned investors. Samsung, the world's largest maker of smart chips, smartphones and display panels, reported explosive profit growth in 2017, driven by an unprecedented boom in business chip.
The profit growth in the memory is still the lion's share of Samsung's bottom line. During the second quarter, its semiconductor business generated 11.61 trillion won ($ 10.39 billion) in operating profit, nearly 80 per cent of the entire operating income.
Samsung's handset business reported a big fall into a quarterly profit year ago. Sales of Galaxy S9 and other flagship smartphones Its reported 2.67 trillion in operating income during the three-month period, compared with 4.06 trillion won a year ago. With the growth of the smartphone market stagnating but the competition intensifying, handset makers have struggled to increase their profit.
Samsung gives an upbeat forecast on the semiconductor industry, echoing the rosy view of other chipmakers. But it is expected in the mobile business going forward.
"The outlook for the memory chip launches," it said in a statement. "
Samsung is due to announce the latest iteration of the Galaxy Note smartphone next week, which it said will hit shelves sooner than previous years.
The company said the new smartphone, which has been the most expensive phone model from Samsung, will be sold for "a reasonable price" this time. Costly high-end smartphones have been lost luster in recent years because of older phone models
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