Samsung Revenues Decline, Profits Stagnate on Lackluster Galaxy S9 Sales

Samsung Electronics on Tuesday reported 0.one percent dip in its second quarter net profit from a year earlier amongst slower sales of its Milky way S9 and S9 Plus smartphones. The company posted an operating profit of 14.87 trillion won ($13.4bn) in the April-June flow, downwards 5.four pct from the record 15.64 trillion won the visitor earned in the previous quarter. The results mark the company's the first quarterly decline in operating profit after several quarters of tape growth.

Overall sales came in 58.48 trillion won, ($52.iii billion), which is as well 4 percent lower than the company's revenues of threescore.56 trillion during the previous quarter. Net income, meanwhile, saw a slight increase, coming in 2 pct higher at 10.98 trillion won ($9.viii billion). The company had earned , from KRW ten.80 trillion a year earlier.

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Operating profit from the company's mobile division fell to 2.67 trillion won from 4 trillion a year before due to weaker-than-expected sales of the Milky way S9, with the visitor'due south dominance coming nether increasing challenge from the likes of Apple tree and OnePlus at the premium-end and brands like Xiaomi and Laurels at the mid-range.

With its smartphone concern declining to practice too as it did over the past couple of years, the visitor's earnings during the quarter were propped upwards largely past its semiconductor business, which generated more than fourscore percent of its operating profit. According to Samsung's declaration, operating profit at its semiconductor division rose to 11.6 trillion won, representing an almost 50 percent leap from the year-ago menses.

On the positive side, though, the company presented an upbeat outlook for the coming quarters. "Looking ahead, Samsung expects sustained strength in the memory market place and growing demand for flexible OLED panels to bulldoze earnings college in the 2d one-half", the company said.