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At the end of January, we receive many official reports from various manufacturers. We are now witnessing the release of Samsung 's annual report for the year 2018 and the scenario is not very positive for the manufacturer of Android.
According to the company's own data, since the start of the Samsung Galaxy Note7 scandal, the brand was not experiencing such a sharp decline in smartphone sales. Yet there are more lessons to learn here.
First of all, in the last quarter of 2018, sales were 20% lower compared to the same period in 2017. In other words, the brand sold fewer Android smartphones during this period. period.
The black quarter for Samsung – October to December 2018
As a result, profits in the same quarter fell by 29%, once again compared to the same period in 2017. Nevertheless, the annual outlook was positive, albeit marginally.
In fact, the South Korean conglomerate has been able to increase its annual revenue by 1.75% over 2017. The final profit of Samsung has also increased, to 9.77%, a figure already considerable.
Samsung is composed of several divisions
We recall that Samsung is composed of several divisions in which Mobile is one of the most emblematic. We can also list, by way of example, the Consumer electronics (THIS) Computer and mobile communications (MI), Device Solutions (DS) and the Display panel (DP).
But it is also the division responsible for its smartphones and mobile devices, the one that had the worst performance of the year. Then we can look at the table now published by the manufacturer of Android smartphones.
Looking at its provision, quarter by quarter and year after year, Samsung Mobile has experienced revenue and profit losses. Nevertheless, the South Korean giant is experiencing a slowdown in all its divisions, although the intensity varies depending on the department in question.
Samsung's Android smartphones continue to lead
When we compare the performance of their Android smartphones between 2017 and 2018, we record a 5.8% decline in the volume of mobile devices sold. In addition, we also recorded a 14% decrease in revenues from the sale of these devices.
In its report and according to its justifications, Samsung emphasizes that the decrease in demand for chips, memories and semiconductors is the main cause of the fall in sales and, consequently, the profits made.
It was the worst quarter since the Samsung Galaxy Note7
It was not until the third quarter of 2016 that Samsung recorded a similar drop in sales of its Android smartphones. The brand does not hesitate to report it, despite its confidence in the future with the Galaxy S10.
The brand has also been confronted with increased competition in the production of mobile screens. In addition, it also highlights an increase in competition in the production of memory chips, among other components.
Finally, the brand is already predicting further losses in the first quarter of 2019. Meanwhile, it places its hopes on the Samsung Galaxy S10 it will present in February at its event Unpacked, which should arrive on the market in early March.
The smartphone maker Android also believes that its TV department and storage and storage solutions will go through a period of stagnation. However, starting in the second quarter of 2019, the market is recovering.
Can the Samsung Galaxy S10 be all that the brand expects of it?
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