Samsung says profits fell due to slow S9 sales

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Samsung's second-quarter earnings report reveals its operating profit fell nearly 5 percent, to 14.9 trillion won ($13.3 billion), with revenue down 3 percent, to 58.5 trillion won.

Samsung said revenue in the second quarter feel due to "softer" sales of smartphones, particularly the Galaxy S9, and display panels in what it called a "stagnant" and "sluggish" market.

Some analysts predict the company's operating profit for the next quarter may reach 17 trillion won on the back of continuing demand for semiconductors throughout the year.

Samsung's mobile business accounts for almost 40 percent of the company's sales. Revenue for the second quarter tallied 58.48 trillion won, down 4.1 percent on year and 3.4 percent on quarter.

According to industry watchers, Samsung might be able to outpace Apple for the entire 2018 fiscal year.

Samsung Display, the display manufacturing unit of Samsung, is also working on unbreakable OLED panels.

Reuters claimed that it was all because the Galaxy S9 device missed sales targets and Samsung had lost its leadership of the smartphone market.

The patent report also explains the technical aspect of the new ultrasonic biometric scanner with the help of a diagram, The diagram suggests how Samsung is planning to use the in-display biometric scanner on the two different form factors of the smartphones - the home button styled display and Edge-to-Edge display.

"For OLED, earnings decreased QoQ despite improved factory utilization for rigid products, as demand from major customers for flexible panels remained slow", Samsung noted.

"The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches".

TechRadar will be reporting live from the NY launch event to bring you everything you need to know about the Galaxy Note 9, including confirmation of its release date, on August 9. But it expected challenges in the mobile business going forward. Operating income from the chip business amounted to 11.6 trillion won, which can be attributed to a 2.8% increase in prices of DRAMs as well.

"For DRAM, server demand stayed strong owing to the ongoing shift to higher density and expansion of data center infrastructure". While the company doesn't reveal the actual price of the smartphone, a recent report claimed that the 128GB storage variant of the Note 9 model will come with a price tag of IDR 13,500,000 (approx Rs 64,400).

Looking to the second half, the TV market is projected to grow YoY, especially in developed economies.

Results were boosted by strong TV sales, complemented by the 2018 World Cup.