Samsung suffers 60% drop in Q1 2019 profits amid strong Galaxy S10 sales

Galaxy Fold

While the Galaxy S10 and the foldable Galaxy Fold generated a lot of buzz for the Korean company earlier this year, things, however, went awry when a number of reviewers reported having issues with using the foldable device’s screen, instantly killing the Galaxy Fold’s reputation, and that made Samsung recalled the device even before it reached the hands of consumer, though we do not think this could be as worst as the Galaxy Note nightmare.

Adding to its ordeal, the South Korean firm has released details of its quarterly report for Q1 2019, and as predicted, it isn’t the best of time for the firm. The company earlier today posted a 60 percent slid in profit compared to last year, from 15.64 trillion won (roughly $13.4 billion) to just 6.2 trillion won (about $5.3 billion).

While its competitions posted a decline in smartphone revenue, Samsung says its mobile business remains strong due to strong Galaxy S10 sales. Overall, the firm shipped a total of 78 million phones and 5 million tablets in the last quarter and precisely attributed the weakness in mobile phone division to the poor sales of its low and mid-range models. However, the firm looks forward to a better result in the next quarter, even as it promised to “strengthen its product lineup through innovations and continued reorganization of its product offerings”, giving the Samsung Galaxy S10 5G and the Galaxy A80 with a rotating camera as examples.

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Samsung Q1 2019 financial results

Away from the phone division, Samsung attributed its poor performance to falling demands for its memory chips, and also low patronage of its display panel business, which manufactures OLED and LCD screens, however, the firm foresees a rebound in the next quarter, as it envisages more demand for flash memory in servers, as well as smartphones with 256GB of storage and up, and the company says it’s actually shipping more processors and modems even as demand for its image sensors are slowing — that last one due to “weak smartphone seasonality.”

And as for its display business, the Korean firm expects more patronage for premium TV panels like UHD, 8K and ultra-large TVs, while it also aims to push the unit to profitability by pushing some more value-added products to the mass market. You can hit the source link for the full press release.

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