Samsung's Q2 Profit Down 56% YoY, Improvement Expected In H2 2019

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Samsung has announced its financial results for the second quarter of this year, and things are not looking all that great, at least in comparison with the same period last year. The company’s Q2 profit is down for about 56-percent compared to Q2 2018.

Samsung Electronics’ has an operating profit of $5.6 billion in the second quarter of this year which is not a small feat on its own, at all, but if you compare it to Q2 last year, it’s a considerable decrease. Samsung also posted $43 billion in consolidated quarterly revenue.

There are a number of reasons why this is, and the drop in prices for memory chips is one of the main ones. Samsung is a major supplier for such chips for smartphones and servers, amongst other devices, so any major changes in prices do affect the company quite a bit.


In addition to that, the company has been affected by iPhone sales quite a bit. Samsung supplies Apple with iPhone parts, quite a bit of parts that go into the company’s smartphones, and iPhone sales haven’t exactly been booming lately.

The company says that the competition in the smartphone market will increase in the second half of the year, so it is planning to enhance its product lineup and expand sales of new mass market models. Samsung is also planning to expand its 5G business on a global scale in H2 2019.

Samsung says that demand for NAND and DRAM increased in H2 2019, despite weak market conditions, and that trend is about to continue in the second half of the year, although Samsung sees volatility in the overall industry due to increase external uncertainties.


The Display Panel Business reported a revenue of $6.43 billion (KRW 7.62 trillion) and $634,2 billion (KRW 0.75 trillion) in operating profit for the quarter. Mobile display earnings increased for the company, as shipments for OLED panels have increased, led by new technologies such as fingerprint-on-display and hole display, says the company.

Large display sales have also seen some improvement, notes Samsung, at least compared to the previous quarter. Samsung expects a further recovery in mobile displays from stronger sales and higher production in the second half of the year.

Samsung says that its IT & Mobile Communications Division posted $21.87 billion (KRW 25.86 trillion) in consolidated revenue, and $1.31 billion (KRW 1,56 trillion) in operating profit in H2 2019.


Demand for smartphones has declined due to the negative macroeconomic environment and seasonal weakness, says the company, though the company’s Galaxy A series smartphones have been selling well, it seems.

In the second half of the year the overall mobile market demand is expected to remain weak, says Samsung, but the company is planning to strengthen its lineup, as already mentioned, and try to boost sales along the way.