Samsung posts a soft second quarter on weak flagship phone sales


Do you believe Samsung is on the right path to make sure that less expensive smartphones are given the same treatment as flagship handsets of the future?

Samsung said the "slow sales" of these phones was down to not only a tough premium smartphone market, but also intensified competition in this sector. And sales should improve in the second half of 2018, thanks to a normal seasonal uptick.

Higher marketing expenses and disappointing sales of the S9, which fell short of its target, weighed on its mobile performance, Samsung said.

While all eyes are on the Galaxy Note 9, Samsung is also said to be gearing up to launch a new Galaxy A smartphone.

"It is not an easy game for Samsung unless it really meets consumer's needs for new smartphones".

The South Korean tech giant posted an operating profit of 14.87 trillion won ($13.3 billion) and revenue of 58.48 trillion won, a rise of 5.2 percent and a drop of 4 percent, respectively, from a year ago.

"Second quarter revenue fell due to softer sales of smartphones and display panels", Samsung said in a statement.

It remains to be seen whether Samsung's difficulties in the mobile business, which accounts for about 40 percent of its revenue, are the result of its own failings or reflect the industry slowdown more broadly.

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The expected Samsung Galaxy Note 9 color line-up.

It is speculated that the Samsung's Galaxy S10 and S10 Plus arriving in Q1 2019 will be featuring ultrasonic fingerprint scanner that offers accurate results.

Samsung shares slid 0.3 percent by 0620 GMT, compared with the flat broader market.

One area of interest that showed positive growth for Samsung was its TV business, which the company credited "a major global soccer event" for the boost in sales.

This is corroborated when looking at the section dealing with the display division, where flexible OLED is set to drive growth for Samsung.

As always, Samsung's semiconductor sector performed well as operating profit rose 45 percent YoY to 11.6 trillion won.

That view echoed South Korean rival SK Hynix Inc's forecast last week of solid DRAM chip sales for the rest of the year, comments likely to ease investor concerns that an unprecedented two-year boom in the chip business is about to come to a rapid end.