Samsung Q2 Profits Drop 56% Amidst Declining Smartphone Sales, Lower DRAM Prices
Jul. 31, 2019One of the major reasons for Samsung’s less-than-impressive earnings was its smartphone business, which earned only 1.6 trillion won ($1.4 billion) in quarterly profit, down 42 percent from a year ago, because of what the company said was slower sales of flagship models amid increasing competition and increased marketing expenses.
There is, however, some light at the end of the tunnel for the company, as memory chip prices are likely to start bottoming out sooner rather than later.“Server demand is expected to increase gradually as customers adjust their inventory levels and resume purchasing, while PC demand is also likely to expand”, the company said in a statement.
It will be interesting to see how Samsung counters the continuing fall in its smartphone sales, which constitutes a massive part of its consumer electronics operations. The company is expected to launch theGalaxy Note 10 next weekin New York, followed by theGalaxy Fold in September.
Unveiled alongside the Galaxy S10 and S10 Plus last February, the Galaxy Fold was originally hailed by many as the future of smartphone design beforereports of serious malfunctionstarted pouring in from reviewers and journalists. With the Galaxy Note 7 fiasco still fresh in the minds of everyone, the companypostponed the launchof the new phone, saying it will be launched only after all the issues are sorted out.
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