Samsung reports $5.6 billion profit, preps an onslaught of new A-series phones

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.

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21 Comments

1. legar123

Posts: 60; Member since: Mar 26, 2019

Samsung shares tumble after the company says its second-quarter profit fell 56% PA: Not too shabby. LOL.

18. Fred3

Posts: 574; Member since: Jan 16, 2018

Even with the drop in sales, they still sold more than other companies through out the whole year

2. LEEDAQ

Posts: 191; Member since: Aug 07, 2018

what have they fkn done with their name of models

3. AbhiD

Posts: 851; Member since: Apr 06, 2012

Profits fall 56%, sales down year on year but Samsung crushed it according to this author. What kind of crap article is this? You are only making yourself look like a fool in here. Sales can increase or decrease Quarter on Quarter but they mean nothing. That just depends on in which timeframe phones have been launched and what other brands are doing at that time and what season is it, festival or not. Always the same period from previous year is compared to have true picture. And that shows massive slowdown and profit erosion. Same is the case with Apple. Tell things as they are. No need to be a promoter or apologist of a specific brand.

14. raky_b

Posts: 420; Member since: Jul 02, 2014

Well, you know they did expect worse...than Trump did his thing and helped Samsung's sales. So, yeah...they are happy to stop that expected decline. But so many bragging about excellent S10 trio sales....and now it seems that it is even worse than S9 twins???? Sammy is selling more cheaper devices, and those flagship devices are underperforming on market, but they still expect to increase profits with overpaid devices as Note 10 and Galaxy X??? Wandering which school did their managers went through and which planet they came from???

4. mackan84

Posts: 609; Member since: Feb 13, 2014

“...strong sales of the new Galaxy A Series, including the Galaxy A50 and A70. However, sales of flagship models fell QoQ on weak sales...” Can we all agree that price has nothing to do with stagnant flagship sales once and for all. Developing countries will keep buying these midrange phones for a couple of more years but the rest of us will not be upgrading as often anymore. We stopped upgrading as often right before prices went up and the price-hike was a direct result of that. It doesn’t matter if tech-enthusiasts upgrade every year because this is the truth. A damn bed mattress is expensive because we don’t upgrade it every year.

6. Subie

Posts: 2415; Member since: Aug 01, 2015

You just wrote: "We stopped upgrading as often right before prices went up and the price-hike was a direct result of that" So you're saying that demand went down first and then the prices went up as a result...? I'm sorry, but that is not how supply and demand works.

7. mackan84

Posts: 609; Member since: Feb 13, 2014

Hey there is still cheap phones out there. But the flagships needs those margins even more after demand went down. Try putting the “supply and demand”-model on a sofa or beds.

25. Subie

Posts: 2415; Member since: Aug 01, 2015

So how do you explain why prices were going up in years when sales were good? IMO there is a price ceiling for what consumers were willing to pay, or could pay for these devices. And that ceiling was passed last year, leading those consumers to hang on to their current devices a little longer.

8. strawberry

Posts: 116; Member since: Feb 20, 2019

55% is massive!

9. adecvat

Posts: 652; Member since: Nov 15, 2013

Galaxy S10 is flop officially.

11. c.m.s

Posts: 239; Member since: Dec 10, 2017

A 42% drop in profit for the mobile division tells us it’s not doing good very well, thats for sure. The profit is in the ”premium” segment.

20. Carlitos

Posts: 679; Member since: Oct 23, 2011

Most of Samsung profits come from chip business, not smartphone sales.

22. c.m.s

Posts: 239; Member since: Dec 10, 2017

Again, the 42% profit drop is from the mobile division. So it has nothing to do with the chip business.

12. iloveapps

Posts: 909; Member since: Mar 21, 2019

Apple making good profits in every category except iphone while Samsung hardly profiting from chips and continued mobile profit disappointment. Where is Sgodsell, cdmacos and sissy246 the anal-yst of technology? What can you say about Samsung 56% profit decline? Is it really about weak memory chip sales or weak Galaxies sales? If Samsung is making innovation then what is the meaning of this news? Apple is really a good company because they knew that there’s a certain point that mobile sales will be saturated and with their quality products, people will hold more on their idevices so they have to build an unparalleled ecosystem together with the best services. I for sure that, Samsung is looking for ways to copy Apple’s Titanium Card. Can’t wait to get one this August to purchase my new Macbook 16” and iphone 11.

15. raky_b

Posts: 420; Member since: Jul 02, 2014

You know that not everyone is like you, willing to pay more and more (even though, now just every 3rd or 4th year, and not more often like before)!? Apple is doing fine as long it has so many active users...but once when more and more of them turn off their old iPhones and instead of new apple device, they buy One+, their revenue will decline very fast....not just because I will not buy iPhone, but because I(and many others) will not use any of Apple's services anymore... So, good luck with spending like $3000 on your next device in 2023, just to make Apple's profits in same level.

13. iloveapps

Posts: 909; Member since: Mar 21, 2019

Laughing out loud with Samsung mobile profit decline due to Samsung FOLD didn’t materialize. As if FOLD gonna change the fact that there’s no premium price for an android because there are lots of android with better specs for a mid range price. Samsung should do what the latest pixels price offers and leave apple in the premium world.

16. Vancetastic

Posts: 1699; Member since: May 17, 2017

What would be even more hilarious is if a bunch of people lost their jobs and couldn’t feed their families, amiright? LOL at misfortune!!

17. apple-rulz

Posts: 2198; Member since: Dec 27, 2016

Oh please you old fool, don’t pretend you’re altruistic.

19. Vancetastic

Posts: 1699; Member since: May 17, 2017

Keep crying!

23. OneLove123

Posts: 1245; Member since: Aug 28, 2018

The A series is amazing. I have the A20 and planning to get A70 next month

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