Samsung Electronics and not just Samsung Mobile, has released their second-quarter results for the year 2019 and things don’t look so good.
As predicted, the consumer tech giant has suffered a significant dip in operational profits, posting a 56 percent decline year on year only making Kes.583 Billion between April and June. This is the lowest number the company has recorded since its Galaxy Note 7 Fire fiasco back in 2016.
In terms of revenue, Samsung Electronics posted a revenue of Kes.4.9 Trillion over the same period, a 4 percent drop the same period in 2018. The company blamed the slump in revenue over low demand for their semi-conductors – a business that has in the past propelled Samsung forward.
However, Samsung Electronics did note that they expect sales of both semiconductors and OLED displays to improve in the next quarter as demand soars.
When it comes to their mobile phone division, Samsung Mobile posted an 8 percent increase in revenue but before you celebrate, there was a 42 percent drop in profits. This is as a result of an increase in sales of their mid-range phones – Galaxy A-Series and Galaxy M-Series (in some markets) which generally have low margins compared to their flagship phones that did not sell so well in the same period thus resulting in the drop in profits.
Samsung Mobile did also express confidence that the next quarter (q3 2019) will see an improvement in profits from their mobile phone division as the company gears up to launch the Samsung Galaxy Note 10 and the Galaxy Fold withing the same period.
It’s not just Samsung that has seen a growth in smartphone sales in Q2 2019, Huawei (against all odds) also sold more phones in Q2 2019 compared to Q2 2018, however, Huawei’s tale of impressive sales might be short-lived as the real effects of the U.S. trade ban begin to take effect in Q3 2019.