Samsung blames lower sales mobile division on disappointing sales Galaxy S9

Jul

31

2018

Samsung has published its quarterly results, noting that its mobile division was operating less than in previous quarters. According to the manufacturer, the disappointing sales of its Galaxy S9 smartphone was the reason.

In the announcement of its financial figures for the second quarter of this year, Samsung writes: “In the stagnating market for high-end smartphones, the IT & Mobile Communications division reported a decline in revenue compared to the previous quarter and last year, by slow sales of the Galaxy S9. ” Further on in the message, Samsung adds that the S9 + also belongs to that and that the phasing out of older models also contributed to the decline in turnover. The profit of the department was depressed by higher marketing costs. Samsung does not mention numbers of smartphones sold.

The mobile department achieved a quarterly turnover of 22.67 trillion won, approximately 17.3 billion euros, with a total annual turnover of 58.4 trillion won. That is a decrease of 22 percent compared to the previous year. According to the company, the screen department of Samsung also had to deal with declining turnover due to low demand for OLED panels, in combination with a falling price and declining deliveries of LCD panels. Samsung expects the sale of OLED panels to recover in the second half of the year. The same expectation is for the mobile division. Samsung expects a lot of competition in this area and therefore wants to release ‘a new Note device’ earlier. With that, Samsung probably refers to the Galaxy Note 9 , which will be presented on August 9th. Presumably the device is for sale later that month. The Note 8 was released mid-September last year.

The chip department did show revenue and profit growth, which Samsung ascribes to demand for dram and nand memory. The consumer electronics division, where the South Korean manufacturer is dropping its TVs, saw more profit by ‘a big football event’. The total net cash profit of Samsung amounted to 11.04 trillion won, around 8.44 billion euros. That is slightly less than a year earlier and also less than the previous quarter, which means that his record profits have come to an end.

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