Samsung reports $5.6 billion profit, preps an onslaught of new A-series phones
With rapid restructuring of both its corporate organization and product lines, Samsung managed to turn the ship around, and stabilize its sales and profits that were heading downwards after the flagship smartphone market started maturing about two years ago.
Granted, it doesn't post record quarters any more, but $5.6 billion in profits isn't too shabby either. That's exactly the operating income that Samsung just reported for the second quarter, reflecting a full trimester of Galaxy S10 sales, but also of the hundreds of other gadgets, big and small, as well as components like memory and displays that Samsung sells.
Said memory chips are the biggest culprit behind the jaw-dropping 56% reduction in profits compared to the same period last year, as an industry ebb unfurls thanks to the US-China trade war and the geopolitical spat between Japan and Korea.
We wouldn't worry too much about a company that makes more than $5 billion a quarter, even though Apple, in a revenue slump of its own, made double that amount, but would rather look at hints about Samsung's mobile division way going forward.
Samsung's earnings in the mobile division fell year-on-year die to the tepid demand as people keep their phones longer and the fact that premium products like the Galaxy Fold never materialized in the quarter, but the overall number of phones sold increased.
Going forward, Samsung expects to introduce new 5G models, perhaps the ones in the Note 10 series, and new midrange A-series phones, at least one of which may sport a 5G modem, too. Speaking of the A-series, it has become a real playground for Samsung, as it preps no less than 9 new models to be released late this year and in 2020, suiting every taste and price point.
The Dutch from LetsGoDigital have unearthed trademarks for Galaxy A11, 21, 31, all the way to 91, so expect plenty of surprise phones from Samsung in the months ahead. If the intriguing Galaxy A50, A70 or A80 are any indication, Samsung's future midrange is shaping up to be as exciting for the price point as its flagship series.