Q1 2022 earnings report: Samsung posts its lowest profits in three years
Last updated: April 30th, 2019 at 10:06 UTC+01:00
A few weeks ago, Samsung released its earnings guidance for the first quarter of 2019, estimating a threescore% turn down in operating profits. The company has at present published a detailed report confirming that project with an operating profit of 6.23 trillion won (about $5.35 billion), a drop of 60.2% from fifteen.64 trillion won a yr ago. This is Samsung's worst operation since the Galaxy Note 7 debacle in 2016.
Brandish Panel business running in loss
Samsung's Q1 2019 profits were hit past multiple factors. The ever plummeting semiconductor business generated 30.four% less revenues as compared to Q1 2018. The company'due south chip business, nevertheless, is still its largest correspondent in operating profits, owing to improvements at the System LSI and Foundry businesses. Samsung expects the business concern to amend slightly in the 2d quarter, as demand for image sensors and 5G chipsets rises.
Samsung's mobile business concern also saw a drop in profits, despite the solid sales of the Milky way S10 series. The new Milky way Yard and Galaxy A series smartphones are too selling well, but increased expenses from the lineup revamp ways they aren't contributing much to the profits. Sales of premium TVs, withal, contributed to the earnings growth in the Consumer Electronics division. Going ahead, Samsung aims to secure profitability by improving price efficiency with its mid-range and depression-end smartphones. The company also sees the potential in 5G and foldable smartphones to strengthen its leadership in the smartphone market.
Information technology is the display business that hurt Samsung badly in the previous quarter. The company suffered from lower than expected demand for its OLED panels, equally well as weaker prices of LCD panels, resulting in operating losses of 560 billion won. Samsung expects the display business organization to recover going forward with the launch of flagship phones from its clients. The Southward Korean tech giant also has hopes on large-sized display panels to bring limited improvements in the adjacent quarter. The demand for flexible displays and LCD panels is probable to remain weak.
Overall, Samsung expects slight improvements in profits over the next two quarters. However, the company may discover it tough to reach the levels of the final two years, when information technology recorded its highest ever profits.
Source: https://www.sammobile.com/2019/04/30/q1-2019-earnings-report-samsung-posts-its-lowest-profits-in-three-years/
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