Samsung's profits increase more slowly



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Samsung Galaxy Note 7

According to a survey, Korean mobile sales are expected to have decreased by 2 percent in the second quarter.



(Photo: dpa)

Tokyo Samsung Electronics is weakening to a very high level. For the second quarter, the largest South Korean company said Friday that its operating profit of 14.8 trillion won (11.3 billion euros) would be 5.2% higher than the Last year. But this missed Apple's toughest rival not only a new record, but also the market consensus easily. Sales should even have dropped 4.9% to 58 trillion won.

Samsung's profit margin is still over 25%, a fabulous result for a traditional conglomerate. But investors reacted in the morning to the trade still ungracious. 40 minutes after the start of the Seoul Stock Exchange, Samsung's 45,100 won price was 1.8% lower than the previous day's closing price, 21% below the peak of November 2017.

The exact reason for this weakness not known. Because Samsung does not betray in its first estimate traditionally neither the result of the divisions nor the net profit. But badysts agree that Samsung's first step, the highly-profitable memory chip segment, continues to support earnings. Instead, they expect Samsung smartphones to miss the group's ambitious expectations for more than 350 million cell phones sold this year.

The smartphone market loses its momentum

Pessimism was triggered by sales in the first quarter. According to a survey conducted by Reuters and Samsung badysts, Korean mobile sales are expected to have fallen by 2% in the second quarter. And that's a problem for Samsung. Because traditionally, Samsung is fighting with Apple for market leadership, especially in the profitable premium segment. And it is there that Apple apparently defends its lead

For example, Samsung's new generation of smartphones seems to sell more slowly than its predecessors last year. For example, the new flagship phone, the Galaxy S9 Plus, could move Apple's iPhone to the world's top spot in April

In the first quarter, however, according to a researcher, Apple took Counterpoint with its iPhone 8, iPhone X and iPhone 8 Plus. places 1, 3 and 5, Samsung with its Galaxy devices, however, ranks only 2 and 6.

The fourth place has conquered the Chinese brand Xiaomi with the cheapest smartphone Redmi 5A, which sells Amazon in Germany for a bit more than 100 euros, Experts suspect that customers are currently replacing their phones less quickly than before, as there are no major innovations this year.

Only Apple has pushed in the iPhone X a new form factor, which seems to be paying off despite its high price, As the ranking in the last quarter financially paid for Apple, the Californian group will explain at the end of July .

The good news for Samsung, however, is that the memory chip boom is not over yet. The high demand for Nand dramas and chips has mbadively inflated the profit margins of all chip makers. The global market leader Samsung has even reduced its sales by 50% in recent quarters.

If this trend continues this year, Samsung could, with a little luck, hope for a recovery in demand for smartphones in 2019. Experts expect major innovations such as flexible displays or even extensible , which could arouse the interest of the customers.

However, the biggest risk for Samsung is the trade policy of US President Donald Trump. If its dispute with China degenerates into a customs war and makes smartphones more expensive in the United States, Samsung should be hit twice.

Samsung sells not only smartphones, but also the leading supplier of other memory chip manufacturers and OLED displays. And component sales could then break with the sale of smartphones in the United States.

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