MK News – Samsung Electronics lethargic in front of 2H,



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Samsung Electronics announced 2Q results. He was in line with the expectation that the company could lose profits due to the sluggishness of some business with the exception of semiconductors and consumer electronics.

Samsung Electronics announced on June 6 that it had sales of 58 trillion won and operating profit of 14.8 trillion won in the second quarter of this year. Sales fell 4.92% year-over-year and operating income climbed 5.19% YoY, but below market estimates.

According to Samsung Electronics' second quarter estimates, sales amounted to KRW 60.55 trillion and operating profit to KRW 15.2 trillion, according to the information service provider's guide. National brokers have forecast that operating income will decrease in 2Q09 due to lower earnings in IM (mobile and mobile) and DP (display) divisions.

Due to the announcement of preliminary results, the results of the commercial division were not disclosed. Semiconductors accelerate the growth of server investment by focusing on US data centers. In addition, the demand for PCs also improves thanks to the recent decline in GPU prices. The semiconductor division is a beneficiary of Samsung Electronics, which accounted for 65% of total operating profit in the first quarter.

The IM division and the DP division are part of the commercial divisions whose profits have declined. It is also feared that the benefits of the display division have been negligible due to the fall in prices of LCDs. Despite falling prices due to the entry of Chinese manufacturers, the demand of TV manufacturers has not increased but decreased.

The decline in sales of the Galaxy S9 also affected the results. The decline in sales volume is greater than previous work, and marketing expenses during this period also weigh on profits. In addition, competition is intensifying as smartphone demand continues to weaken in the global market and the quality of Chinese smartphones is improved.
"We expect Galaxy S9 sales volume to reach 8 million units in the second quarter of this year." The expected annual sales volume in 2018 is only 28 million units. "

The sales volume of Galaxy S9 is the lowest in six years since S3 (released in 2012). The S8, released last year, sold 37.5 million units.

The S7 (released in 2016), which recorded the highest sales, sold 48.5 million units.

However, the profits of the DP division should improve significantly compared to 3Q09, when 2S09 will start. In addition, the benefits of the CE division (consumer electronics) are expected to improve through aggressive marketing of QLED television.
Kim Dong-won, a researcher at KB Securities, said: "The full production impact of the demand of new Chinese iPhone and smartphone manufacturers for rigid OLED panels will increase, and the rate use of Organic Light Emitting Diodes (OLED) because that should increase. "

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