Why it matters: Just as the company expected, Samsung has announced that its second-quarter was a disappointing one. The Korean giant’s operating profit was down 55.6 percent year-over-year to 6 trillion won (around $5.6 billion), and revenue was down 4 percent to 56.13 trillion won.
While Samsung’s revenue was slightly higher than predicted in its guidance report earlier this month, operating profit was lower than expected.
Q2 was the second quarter in a row where Samsung felt the effects of declining DRAM and NAND prices. Operating profit for the firm’s chip business was down 71 percent YoY to 3.4 trillion won, with revenue at 16.09 trillion won. The company does expect market uncertainty to continue, but added that chip demand will increase “on strong seasonality and adoption of higher-density products.”
Samsung's mobile business also saw a decline, with operating profit down 42 percent, though revenue was up 8 percent. It said that although its mid-range handsets sold well, the Galaxy S10 experienced “weak sales momentum” during the second quarter.
Other factors affected Samsung’s bottom line, including weak sales of iPhones, for which it supplies parts, and the ongoing US-China trade war.
Samsung’s Galaxy Note 10 arrives next week, and the long-delayed launch of the Galaxy Fold is reportedly on the horizon. Additionally, it will "introduce more competitive A series models in the second half." The company is also focusing on the next generation of television technology by "positioning QLED 8K TVs as mainstream TVs.”