Galaxy S9 phone sales are not good

Samsung Electronics recorded the weakest growth in its fourth-quarter revenue in more than a year, and the global smart phone market was affected by earnings, despite continued performance of the chip industry. At $ 13.3 billion in the second quarter, the company posted the weakest quarter growth in the first quarter since the first quarter of 2017, while sales dropped to $ 52.1 billion, Samsung said. Operating profit of the mobile phone sector fell by 34% over last year and warned against increased competition in the second half due to the launch of new models, but the giant South Korean technology added The company's results will remain solid in the second half thanks to the growth of the data center.

Revenues fell 4% between April and June, in line with previous estimates. Some, like the rest of the major manufacturing companies, face challenges due to the Sino-US trade war, Low prices some memory chips, and increased demand for cheap Chinese phones.

Net income was about $ 9.8 billion, almost identical to the same period last year, and Samsung blamed sales of its cheap Galaxy S9 smartphone, which is in Intense competition from cheap smartphones, The Chinese Shaomi and Huawei have emerged as major competitors, exerting additional pressure on Samsung in China and India.

Samsung's difficulties in the mobile phone market, where it accounts for about 40% of its revenue, have been compounded by the lack of innovation and declining sales of its flagship products Galaxy S..

Analysts say weak sales of the Galaxy S9 had a negative impact on Samsung's Q2 results, as data indicates a decline in sales of these devices since the launch of the Galaxy S3, with expected deliveries of 31 million devices. Compared to the ability of the company to sell 50 million units of the Galaxy S7 series the most successful.

The semiconductor business performed well, the company announced that the operating profit of the second quarter of the year increased by 45% year-over-year and s & # 39; expects a slowdown in the demand for smartphones and tablets.