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Samsung expects Q2 profit to fall by more than half

By midian182
Jul 5, 2019
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  1. While 6.5 trillion won ($5.56 billion) is a lot of money, it would be Samsung’s lowest profit since Q3 2016, when the Galaxy Note 7 recall and discontinuation hit it hard. Revenue, meanwhile, is predicted to be 56 trillion won ($47.89 billion).

    Samsung never said what caused the falling figures, but it's likely to be related to its chip business, which brings in around 75 percent of the company's profits. As was the case with Q1 2019, the firm is feeling the effects of declining DRAM and NAND chip prices, and the Huawei ban appears to be making things worse.

    As disappointing as the results are, things would have been even worse if not for a one-off payment from an unnamed customer in the display division. It’s strongly believed that the company was Apple, who reportedly paid Samsung 800 billion won ($684 million) compensation after failing to meet its agreed minimum OLED display orders.

    Additionally, Samsung continues to face increasing competition from Chinese smartphone makers. The Galaxy Note 10 launch will no doubt give it a boost, but we still don’t know how the Galaxy Fold will fare once it’s released, given the device’s previous problems. There’s also the matter of an Australian lawsuit over an allegedly deceptive ad campaign to deal with.

    Samsung will publish the final figures for the quarter later this month.

    Permalink to story.

     
  2. grvalderrama

    grvalderrama TS Addict Posts: 212   +20

    The higher you climb, the harder the fall. By the way, doesn't seem a good Q2 for apple either if it didn't meet the minimun display orders...
     
    Mikael_r likes this.
  3. Adi6293

    Adi6293 TS Maniac Posts: 242   +217

    If the Note 10 really have a hole right in the middle of the screen I don't see that selling very well...........
     
  4. Manya3084

    Manya3084 TS Enthusiast Posts: 21   +33

    "we'll sell the phones for $1000+. Don't worry, people are sheep, they'll keep buying yearly upgrades"
    Then the above happens.
     

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