Samsung's Q2 financial guidance is out, results not impressive

Samsung's Q2 financial guidance is out, results not impressive
As reported earlier this week, Samsung released its financial guidance today, showing Operational profit and Sales estimates for the second quarter of 2018. Not to be mistaken with financial reports, these figures are estimates in accordance with K-IFRS (Korean international financial reporting standards). We've compared the figures from the last three quarters and their year over year change in percentage:


What is easily noticeable is that for the last quarter, the YoY percentage changes are not only in the single digits, but sales have actually gone down. The increase in profit over Q2 of 2017 is surely a good sign but compared to previous quarters the tempo has slowed down significantly.

While a drop in sales is never a good thing, especially in the eyes of shareholders, these numbers will look a lot more impressive if we add all the zeroes a billion comes with. Add the fact that Samsung is still the second most profitable electronics company, only behind Apple, and we see that the situation is not exactly dire.

Keep in mind that the sales figures shown are for all products of the Samsung Electronics division, from chips to TV sets, so making deductions about specific products is impossible. Often, when there is such a diversity of products, highs and lows within can be offset and lead to inaccurate conclusions. For example, Samsung's semiconductor division has achieved a tremendous growth over the last year (+53.6%), while Galaxy S9 sales have been weaker than its predecessor's.

We're sure that Samsung executives have all the information they need to make the right conclusions, so what's left for us is to wait and see what the company's response will be in the second half of the year.

source: Samsung via AndroidCentral

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26 Comments

1. piyath

Posts: 2445; Member since: Mar 23, 2012

Give it another year and you'll see the world's greatest downfall of a glorified company for the first time in history. Apple is quickly moving away from them in every aspect of the iPhone component orders, they have no innovations anymore, Chinese companies are innovating incredibly, people are sick and tired of same old Samsung "android" phones and their sky high stupid prices.

3. Hollowmost

Posts: 421; Member since: Oct 10, 2017

Please don't complain like a b*tch when you receive your iphone with LG oled.

8. apple-rulz

Posts: 2028; Member since: Dec 27, 2016

Stop whining like a b*tch just because LG got a contract to build some of the iPhone screens.

12. sissy246

Posts: 7083; Member since: Mar 04, 2015

I don't hate LG at all but, they don't make great screens. So injoy this not so good screens.

24. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

You’re by far and away the biggest b*tch on this sight, so shut that mess up. All you do is hop from article to article nagging and complaining...b*tch.

25. andrewc31394

Posts: 290; Member since: Jun 23, 2012

*site

26. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Right on

13. andrewc31394

Posts: 290; Member since: Jun 23, 2012

ohhh snap hes gonna need some aloe vera after that

5. sissy246

Posts: 7083; Member since: Mar 04, 2015

Right, you just keep thinking that. That is a stupid as apple haters thinking apple will go down.

6. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Please go away with your deluded Apple fanboy propaganda. Samsung's stock has doubled within these last 2 years, and they have posted +50% YoY profit improvements for 2 quarters in a row, which is insane. Samsung is stronger than ever, and the actually have started posting profits even better than Apple's, if you actually looked at the facts.

15. CreeDiddy

Posts: 2148; Member since: Nov 04, 2011

It's because of Samsung Semiconductor division and not their mobile division...

18. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

It doesn't matter what is causing it, it's profit's regardless of which department of Samsung that produces it.

23. c.m.s

Posts: 235; Member since: Dec 10, 2017

Of course it matters in some way. Samsung is a conglomerate, i.e many different companies under one umbrella name. Just because it's going good for one division does necessary mean that another division benefits from that. Would the mobile-division go down the drain in sales/profit (i'm not saying it is) they may not just pour money from the other companies businesses to save it.

9. Tipus

Posts: 851; Member since: Sep 30, 2016

LMAO :)))) what's wrong with your head man? :))

2. Hollowmost

Posts: 421; Member since: Oct 10, 2017

The title should be "Samsung Q2 profit falls short of estimates on weak phone demand" But its phonearena .....

14. andrewc31394

Posts: 290; Member since: Jun 23, 2012

"Keep in mind that the sales figures shown are for all products of the Samsung Electronics division, from chips to TV sets, so making deductions about specific products is impossible". is it hard being that incompetent?

4. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Samsung has had +50% YoY improvements for 2 quarters in a row? That's insane. The fact that they have had a quarter, where people loved to spread doom and gloom around Samsung, and yet they still post a YoY profit improvement is amazing. Samsung is clearly doing well, and a single quarter which doesn't have an insane +50% YoY improvement isn't going to change that. If you look at their stock, then you will also see that it has gone from 25000 KRW a share in 2016 to around 48000 KRW a share in 2018. It's a massive improvement. Samsung will get right back on track once they release their Samsung Galaxy Note 9, which looks to be a fantastic device with the 4000 mAh battery and upgraded S-pen with bluetooth.

7. Hollowmost

Posts: 421; Member since: Oct 10, 2017

Add to that Lpddr5 Ufs 3.0 Hbm 3 Gddr6 ddr5 Z-nand 7nm EUV microLED Foldable battery EV batteries for BMW Exynos for the mass Isocell ... The future looks bright for Sammy

11. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

That's an impressive list. You have definitely done your research. Hats off to you.

17. midan

Posts: 2722; Member since: Oct 09, 2017

"Samsung will get right back on track once they release their Samsung Galaxy Note 9, " They said exactly same thing about Note 7 and Note 8. In reality Note series is for small minority and always been, those doesn't change anything about Samsung direction.

19. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Ah yes, Midan. The resident "Samsung expert", who literally has a picture of the iPhone X as his profile picture, and has never even uttered a single positive word about Samsung without at least saying something even worse about them afterwards. You're such an expert on anything Android, even though you haven't owned an Android smartphone in years, possibly ever. You're going to claim otherwise to try and legitimize your Apple fanboy statements, but it doesn't the fact that everyone knows you would never touch anything Android, regardless of how good the smartphones are.

20. rouyal

Posts: 1573; Member since: Jan 05, 2018

That long winded comment, and you still didn’t counter the argument that the Note series is a niche phone.

22. midan

Posts: 2722; Member since: Oct 09, 2017

How that was related to anything what i said? Why didn't you answer to my comment if you cared to reply. Note series is niche product and always been and it won't make any impact to Samsung situation even if you think it will. Note sales every year are about same because there isn't much users for product like that, this year model will propably sell less because it doesn't offer much compared to last year model so people doesn't see much reason to upgrade.

10. Loubielou

Posts: 603; Member since: Jul 11, 2012

Over Pricing there phones like Apple can not be good for Samsung,and when there Premium phone look identical to the Previous model,consumers are saving there money instead and keeping faith in the first version,with the S8 Plus looking identical to the S9 Plus,then the Note 9 looks same as the Note 8,i bet its just not Samsung struggling with sales in 2018,loads of the others will be the same,Sim Deals are a lot better than mobile phone contracts

21. uberzero

Posts: 51; Member since: Jul 07, 2018

Has S8 Plus a dual lens now? Why was the fingerprint scanner moved below the lens on S9 and S9 Plus? Has S8 a new chipsets, improved Amoled screen, dual speakers and microphones, slightly matted back? S9 series notably S9 Plus is a complete overall flagship compared to iPhone which costs higher and practically came unchanged for three generations. Interesting the chart showed S9 Plus still strong as iPhone 8 yet some comments overlooked that details.

16. fyah_king unregistered

Still up 5%.lol

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