Samsung’s year over year profits drop over 50%
Samsung’s not having the greatest quarter. The company has released its earnings for the second quarter of 2019 and while revenue only dropped 4% year over year to 56.13 trillion won, operating profits plummeted 56% to 6.6 trillion won.
These profits are no by means small but they are the lowest since the Galaxy Note 7 fiasco. This is partially due to weak flagship sales. Despite phone shipments increasing, sales of the Galaxy S10 were fairly week and resulted in a 42% profit drop in the mobile division. This makes sense as flagships have the highest profit margins, and the mid-range phone market (where Samsung is doing well) tends to make less profit.
Another issue is a weak market for its semiconductor business, and things may not improve. The company itself warns of “external uncertainties,” which could refer to trade agreements.
Things will likely improve later in the year thanks to multiple device launches like the Galaxy Note 10 and the long awaited Galaxy Fold. On top of that, the display business is doing well and will likely do even better in the next few quarters. And let’s be clear: Samsung is in no major trouble. Such a huge company with such large profits isn’t going down due to a weak quarter.
Source: Samsung
Via: The Verge