Samsung Electronics Q2 revenue of $52 billion 300 million, a year-on-year decline of 4.13%

According to foreign media reports, Samsung Electronics released the second quarter earnings of the company on Tuesday as of June 30, 2018. The financial report showed that the second quarter operating profit of Samsung Electronics reached 14 trillion and 780 billion won (about $13 billion 300 million), up 5.71% from a year earlier, with revenue of 58 trillion and 480 billion won (about $52 billion 300 million), and 4.13% of a year-on-year decline.

The second - quarter net profit of Samsung Electronics was 11 trillion and 40 billion won (about $9 billion 800 million), down 0.09% from the 11 trillion and 50 billion won in the same period last year. The second - quarter earnings of Samsung Electronics were in line with the preliminary results issued by the company, but not in anticipation of the market. The initial earnings of Samsung Electronics at the beginning of this month showed that the company's quarterly operating profit was 14 trillion and 800 billion won (about $13 billion 200 million), up 5.2% from the 14 trillion and 70 billion won in the same period last year; revenue was 58 trillion won, down by 4.9% from the same period last year.

Market analysts had previously expected that the second - quarter operating profit of Samsung Electronics was 15 trillion and 200 billion won, with net profit of 11 trillion and 600 billion won. The net profit and operating profit of Samsung Electronics did not reach the market expectations, mainly because the slowdown in global smartphone growth has hit the market demand for Galaxy equipment and Chinese display competitors are increasing competition to supply the market to the market.

Samsung's net profit and revenue fell over the same year, reflecting the difficulties in mobile business, although resilient memory chip sales have supported the company's overall performance. While China's smartphone makers, HUAWEI, millet and OPPO, are increasing global market share, Chinese display screen makers are also starting to pose a threat to a series of Samsung electronics such as cheap TV sets and sophisticated smartphone screens.

"The decline in Galaxy S9 sales and the increase in marketing costs have affected the profits of Samsung Electronics," the South Korean broker KTB Investment & Securities analyst Kim Yang-jae in the report said in the report. "In view of the slowdown in demand and the intensification of competition, Samsung Electronics may have little profit growth," the analyst said before the report.

In the world's largest semiconductor market, Samsung Electronics and SK helix, Mei Guang and other chip giants are facing an antitrust investigation for conspiring to manipulate market prices. The three companies together account for more than 90% of the global DRAM memory chip market. The operating profit of Samsung Electronics's second quarter chip sector was 11 trillion and 600 billion won, accounting for 78% of the company's overall operating profit, up 44% from the 9 trillion and 690 billion won in the same period last year. Data from InSpectrum Tech, a third - party storage chip research company, showed that the price of 32GB DRAM memory chips rose by 2.8% in the second quarter of this year, and the price of 128GB NAND flash chips fell by 9%.

The display panel business has taken up another big piece of Samsung's electronic revenue. While Samsung Electronics competes with apple in the high-end smartphone market, the company is also the only supplier of Apple's iPhone X OLED display. The second quarter operating profit of Samsung's electronic display screen business was 140 billion won, down from 1 trillion and 700 billion won in the same period last year.

In the face of growing pressure from Chinese competitors, the second quarter operating profit of the Samsung Electronics smartphone Department dropped to 2 trillion and 670 billion won, down 34% from the 4 trillion and 60 billion won in the same period last year. After ten consecutive years of rise, the demand for the global smartphone market is slowing as consumers begin to wait for the next generation of new mobile phones with innovative technologies, such as the use of flexible screens and devices that support 5G mobile networks.

"Even for those who want to have the latest functionality, it's hard to pay high prices for smart phones with new capabilities and functions," said Paul Swiercz, a professor of management at George Washington University, Paul Swiercz. "Consumers are no longer convinced of the wisdom of the next generation of mobile phones."

The second quarter operating profit of Samsung Electronics, which includes TV and electrical appliances, was 510 billion won, up 45% from the 350 billion won in the same period last year.

The performance of Samsung Electronics in the second quarter benefited from the devaluation of the Korean dollar. The company said early this year that one of the biggest obstacles to the company was global protectionism and warned its employees to prepare for the potential impact. Samsung Electronics is also expanding the capacity of memory chips and smartphones at the same time. The company announced last year that it would invest 20 trillion won in expanding its chip capacity in South Korea and completed the work of building the world's largest smartphone factory in India this year.

Source: Tencent science and technology

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