Samsung Electronics has reported a record amount of profits for every quarter for the past year. However, that run has seemingly come to a halt. Samsung Galaxy S9’s Dream Run Ends:
In the news:
The company only recently released earnings guidance of 14.8 trillion won ($13.2 billion) in operating profit of 58 trillion won ($51.8 billion) in revenue for Q2. Now, that is going to represent a 0.7 percent decline from sales and an 11 percent increase in their profit. In the last quarter, Samsung has made 15.64 trillion won in profit from a revenue of 60.56 trillion won- their strongest result currently.
Analysts say that the poor sales of the Galaxy S9 have weighed on Samsung’s button line for the second quarter. They have reportedly sold the lowest of any flagship Samsung phone after Galaxy S3, with the expected shipments of 31 million units this year. The 2016 Galaxy S7 is said to be Samsung’s biggest hit, which sold about 50 million units.
Of course, that may not be the end of things as it could get better for Samsung later this year. However, the sales of OLED panels can disappoint. Apple is reportedly in works of a new 6.1-inch LCD-based iPhone. This could well make up the higher proportions of sales in their lineup this year. And, if Apple brings in LG Display on board as an alternative OLED supplier for iPhone X models, then that could limit Samsung’s ability to sell panels and charge a premium.
