Samsung’s profit for Q1 2019 down by 60%, weakest profit in two years
South Korean tech giant Samsung is expecting improvements in the results of second-half of this year on expectations of a boost up in memory chip and smartphone sales, after posting its weakest profit of over two years in the first quarter of 2019.
Samsung’s revenue for the first quarter fell by 13 percent year-on-year to reach around $45 billion. Meanwhile, operating profit for Q1 2019 came in at $5.33 billion but it represents a huge decline 60 percent from the same period last year.
In a twist of fate, Samsung’s most profitable semiconductor business recorded a 64 percent fall in operating profit to reach 4.1 trillion won, while the display business booked a loss of 560 billion won. A senior analyst at HI Investment and Securities, Song Myung-sup stated;
“On the macroeconomic side, China may give a boost to its IT industry to support the economy and if there’s a trade agreement signed between China and United States, these will drive up demand for Samsung’s products, like chips.”
On the other hand, Samsung’s loss in the smartphone business is also a worrying factor for the company. As the company notes its mobile business posted a 40 percent drop in operating profit to 2.3 trillion won in the first quarter.
The company is also having a bad time for its Galaxy Fold fiasco. However, Vice President of the company’s mobile business, Lee Jong-min has affirmed that there is “no change” in the company’s push toward foldable phones. As Lee stated;
“Samsung Electronics has been preparing Galaxy Fold for a long period and there’s no change to our direction to provide premium experiences for customers desiring innovation.”