Samsung's Q2 results are in: weak Galaxy S9 sales contribute to 4% revenue decline

Samsung's Q2 results are in: weak Galaxy S9 sales contribute to 4% revenue decline
Samsung Galaxy S9 and S9+

Falling in line with the company’s previous financial guidance report for Q2 2018, Samsung has today confirmed that its sales for the three-month period ending June 2018 totaled $52.28 billion, representing a year-on-year decline of roughly four percent. However, on a slightly more positive note, the company’s operating profit actually rose 6 percent versus last year to $13.28 billion.

Breaking these figures down, the company notes that the increase in profit can be largely attributed to its semiconductor business, which once again performed strongly throughout the quarter. When it comes to the overall drop in revenue, though, the company has listed a number of factors such as weaker demand for the company’s flexible OLED displays and lower LCD panel prices. Perhaps the biggest contributing factor, though, was the drop in revenue registered by the company’s smartphone business. 

Overall, the mobile division saw sales of $21.44 billion and a profit of $2.38 billion during Q2 2018, down from the $26.81 and $3.62 billion registered respectively a year ago. This rather large decrease was attributed to higher marketing costs, slow Galaxy S9 and S9+ sales, and intensifying competition in the overall market, although the company does expect things to improve in the second half of the year.

Aiming to make the most of the higher smartphone demand that is being forecast, Samsung says it will seek to expand its sales by releasing the Galaxy Note 9 earlier than usual. Additionally, falling in line with recent reports, the company has confirmed that its mid-range models will begin adopting “advanced technology.” Also, on one final note, Samsung seemingly confirmed its plans to release a foldable smartphone soon by revealing that it would adopt new form factors in the future.

source: Samsung

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