Poor sales of Samsung’s Galaxy S9 is pulling down its bottom line

Poor sales of Samsung’s Galaxy S9 is pulling down its bottom line

Poor sales of Samsung’s Galaxy S9 is pulling down its bottom line

The Korean won weakened against the U.S. dollar but rose against the euro and several other key currencies, resulting in a negative impact of net KRW400 billion on the quarterly operating profit compared with the previous quarter. The unit accounted for as high as 78% of Samsung's overall operating profits during the quarter. Profits and revenues for the quarter represented sequential decreases of 29.2% and 15.6%, respectively.

Competition would heat up in the coming months as new smartphone models were released, it added.

The Semiconductor Business posted consolidated revenue of 21.99 trillion won and operating profit of 11.61 trillion won for the quarter. "Samsung posted solid earnings by responding to new mobile device launches and demand for higher density products", the company said. "Profit growth is likely to be minimal considering slowing demand and intensifying competition".

Despite some bumps in the road, the company's outlook remains sunny for the second half of 2018. The latest device from Samsung to get a price cut is Galaxy J6.

Demand for Samsung's flexible OLED panels also dropped, while LCD shipments fell in price and quantity. That ended six straight quarters of earnings growth.

Samsung on July 31 has confirmed that the Galaxy Note9 will be launched at a "reasonable price" while announcing its second-quarter earnings.

Sales of its first-half flagship Galaxy S9 and S9+ models were slow, the company said. The phone was launched in 2016 and almost around fifty million units were shipped.

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"The year's second half is generally a peak season so smartphone and tablet demand is expected to go up", Samsung said. With many excellent handsets now available for several hundred dollars less than its flagships, Samsung is feeling the effects of consumers opting for cheaper models.

Patently Apple also claims that the report published by the US Patent Office describes the use of ultrasonic technology based biometric scanner for smartphones.

Samsung officially lifted the lid off of its Galaxy Tab S4 tablet, and well before its Galaxy Note 9 Unpacked event that is set to take place next week.

A few days ago, we learned that Huawei is looking to beat Samsung to market with a foldable phone of its own, just so that it can claim the "world's first" title.

The company expects revenue to exceed $10 billion in 2018, following sales of $9.8 billion in 2017, securing a strong second place in the foundry market. Note's 9 won't spike up the sales for the Korean company this year.

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