Samsung Q3 / 2019: Smartphone segment grows strongly, but still cannot prevent profits from falling 56%

Samsung has just released its financial statements for Q3 / 2019, starting from July to the end of September 2019. The report shows that the Korean giant’s profits have plummeted, amid the memory chip market. slowdown. But the bright spot is that Samsung’s smartphone business has grown strongly.

According to the report, Samsung’s operating profit in Q3 / 2019 reached 7.7 trillion won (US $ 6.6 billion), down nearly 56% from the same period last year. Sales also dropped 5.6%, to 62 trillion won (US $ 53 billion).

The report shows a reversal of 180 degrees compared to last year (which can be considered as Samsung’s most successful year), with the memory chip segment growing and bringing huge profits, while the smartphone segment declined. This year, Samsung’s memory chip segment declined and the smartphone segment grew again.

Smartphone business is back to the golden age

“Smartphone revenue has increased significantly thanks to Galaxy Note 10 shipments, a better and more profitable smartphone. The Galaxy Note 10 sales in Q3 grew by two words compared to its predecessor , ” Samsung said.

In Q3 / 2019, Samsung’s smartphone revenue reached 29.25 trillion won ($ 25.2 billion), up 17.4% from last year. In addition to the success of the Galaxy Note 10, mid-range smartphones of the A-series series also contributed greatly.

Samsung has also launched the Galaxy Fold foldable smartphone for nearly $ 2,000, but it is unlikely to help boost operating profits. Although Samsung still believes folding screens will be the future of the smartphone industry.

Memory chip array “burden” is difficult

Samsung is known to be the world’s leading smartphone and TV manufacturer, but the Korean giant also sells more memory chips than any other semiconductor manufacturer in the world. Samsung’s semiconductor business revenue is even higher than Intel’s.

But when the market demand and memory chip price decline, Samsung is also the biggest loser. Samsung’s semiconductor business revenue in Q3 / 2019 dropped by 29% to 17.59 trillion won ($ 15.1 billion).

Looking ahead, Samsung is quite cautious when the economy is still unstable. However, 2020 will be the year of the growth of the memory chip market, when the data centers are expanding and running out of spare parts.

Reference: cnet