Samsung sees profit drop by half with weak sales of memory chips and cell phones | Business

Samsung recorded a further drop in profit in the second quarter. In a balance sheet released on Wednesday (31), the company reported that operating profit between April and June was 55.6% lower compared to the same period in 2018, reaching 6.6 trillion won (about R $ 21 millions).

Samsung sees profit drop by half with weak sales of

Consolidated revenue in this range fell 4% to 56.1 trillion won (R $ 178.8 billion). This is the third quarter in a row in which Samsung recorded a drop in profit compared to the previous year.

According to the company, the weak results are still caused by the weaker pace and falling prices in the chip market. In addition, there was a reduction in sales of high-end mobile phones, despite the growth of cheaper models.

In the second quarter, Samsung’s chip business had revenue of 16 trillion won (R $ 50.9 billion), representing an annual drop of 26%. Profit fell further, 71%, to stand at 3.4 trillion won (R $ 10.8 billion) at the end of the interval.

The company expects to register “persistent uncertainties” for the division in the coming months, although “demand is growing even more with strong seasonality and adoption of high density products”

Meanwhile, the mobile division posted a 7% growth in revenue, ending the quarter at 25.8 trillion won (R $ 82.1 billion). Despite this, profit fell 42% and closed the range at 1.5 trillion won (R $ 4.7 billion).

Samsung says sales have grown thanks to Galaxy A phones, such as the A50 and A70. However, the most expensive models registered declines due to the “weak sales moment of the Galaxy S10 and stagnant demand for premium products”.

For the manufacturer, the cell phone market will be weak in the next quarter. The company, however, promises to continue presenting new models at different prices in the third quarter. Among them are the Galaxy Note 10, which is due for release in August, and the Galaxy Fold, which is due to finally go on sale in September.

With information: Samsung, TechCrunch.

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