Samsung Electronics’ profit slumped 78.4% from a year earlier to KRW2.5 trillion ($2.1 billion) in the April-to-June period, the company said Thursday, as an intensifying global trade war dented demand for its smartphones and PCs. The results were worse than analysts’ consensus forecasts and marked Samsung’s worst quarterly performance since 2016. Sales also decreased 2.6% sequentially on weak demand for its flagship Galaxy S9 and Note 9 smartphones, with shipments of both models forecast to fall short of market expectations, according to Reuters Estimates. Samsung also cited increased competitive pressure in the smartphone market as well as a weaker global economy, saying: “We faced intensifying competition from rivals such as Apple and Oppo in the saturated mid-to-high end segment, where we had been leading for many years.” Overall, Samsung shipped 106 million mobile devices in the quarter, down from the 129 million units it shipped in the previous quarter and below analysts’ consensus estimate of 111 million devices. Shipments of PCs also declined 3%, reaching 24 million units. Samsung’s profit slump comes at a time when global smartphone marketshare has plateaued
Samsung profits sink to 8-year low as smartphone and PC demand drops
Samsung’s profits sank to an eight-year low in 2017 as smartphone and PC demand dropped, AFP reported. The South Korean tech giant posted a net profit of 5.2 trillion won ($4.9 billion), down from 8.5 trillion won in 2016 and 10.5 trillion won in 2015, it said on Friday. Sales dropped to 52 trillion won from 56 trillion won last year while operating expenses rose to 54 trillion won from 49 trillion won, AFP added. Samsung is reeling from slowing sales of smartphones and PCs, which have been hit by competition from Chinese firm Huawei and US company Apple. The company has unveiled several new models this year including the Galaxy S9 and S9 Plus, but they failed to arrest declines in overall sales. “The (profit) decline is mainly due to weakening demand for mobile phones and PCs,” an unidentified Samsung official was quoted as saying by AFP….
Samsung Electronics Reports Profit Fall Amid Challenging Market Conditions
Samsung unveils new line of foldable smartphones
Samsung unveiled a new line of foldable smartphones that it claims can be opened and closed in just seconds. The phones come with a range of features, including a virtual assistant and an updated AI camera. However, demand for Samsung’s smartphones and PCs has declined recently, and the company reported a -year low profits this week. Samsung blames the decline on weak smartphone sales in China and a slowdown in the global market overall.
Samsung’s profits slid to an eight-year low in the first quarter of 2018 as a result of falling smartphone and PC sales. The company said its flagship Galaxy S9 and S9 Plus smartphones failed to attract customers in the same way their predecessors had, blaming “weak demand” for the drop in revenue from its mobile division. Overall, Samsung reported a profit of $11 billion for Q1 2018, compared to $22.5 billion during the same period last year. However, this was still down from 2017’s figure of $25.8 billion due to increased costs associated with expanding its business into new markets.