Samsung reported a Q2 / 2019 profit drop of 56%

Samsung Electronics reported its Q2 / 2019 business results with profits falling by more than half compared to the same period last year. The reason that Samsung said is because the price of memory chips has plummeted in the first half of this year.

According to the report, Samsung’s operating profit in Q2 / 2019 reached 6.6 trillion won (about 5.6 billion USD), down 55.61% compared to Q2 / 2018. Total revenue reached 56.13 trillion won (about 47.5 billion USD).

The reason for this sharp decline is that Samsung said that because the memory chip market is still facing many difficulties. Lower prices and large data center customers still stock up on inventories, leading to Samsung’s spearhead business being unable to grow.

Samsung said the semiconductor business had revenue of 16.09 trillion won ($ 13.6 billion) and operating profit of 3.4 trillion won ($ 2.8 billion), down nearly 71% from A year ago.

The South Korean company said that the market demand for memory chips will increase in the second half of 2019. However, there will still be many uncertainties and fluctuations, so the semiconductor business is still unable to help the giant. Giants achieved the same successes as before, but only partially recovered.

This is also the second consecutive quarter that Samsung’s profit declined. In Q1 / 2019, profit fell by 60% compared to a year ago, to 6.2 trillion won (5.3 billion USD). Samsung’s rival in the memory chip market is SK Hynix, which has recently reported the lowest quarterly profit in the last 3 years.

Samsung’s mobile business reported revenue in Q2 / 2019 of 25.86 trillion won (US $ 21.8 billion and profit of 1.56 trillion won (US $ 1.3 billion), down about 42 % compared with the same period last year.

Samsung declined to make sales reviews of the upcoming Galaxy Note 10 smartphone, only hoping that it will be higher than the previous Note 9. The future of the second half of this year of the Korean giant will still be very bleak.

Reference: cncb