Samsung Confirms Massive Profit Plunge in Q2 2019 and Dreams up an Insane Triple Display Smartphone
On July 5th Patently Apple posted a report titled "LG's Operating Profits fell 15% in Q2 While Samsung's Plunged by 56% on Weak Semiconductor Sales." Samsung provides journalists with a guesstimate of how their earnings will play out before the official numbers are posted. At the time their guidance didn't give details on the performance of each business, though analysts surmised that slow sales of DRAM and NAND flash chips, which account for about two-thirds of the firm's sales, may have dragged down its profitability.
Today Samsung's "official" results for Q2 2019 were published and operating profits did indeed plunge 55.6%. The drop was due mainly to weak memory chip prices, according to the firm’s second-quarter earnings report released on July 31.
The mobile business also struggled due to the lower-than-expected sales of Samsung’s flagship smartphones, including the Galaxy S10 and Galaxy Note 9, and increased marketing costs. The mobile unit posted 1.6 trillion won in operating income, down from 2.7 trillion won a year earlier, continuing the downward trend since the second quarter of 2016.
You can dive deeper into Samsung's Quarterly report by reviewing their official press release here.
Lastly, in the conference call held this morning Samsung touched on the upcoming Galaxy Note 10 and foldable smartphone Galaxy Fold, saying the company will try to expand the foldable lineup and offer intuitive mobile experience with the new Galaxy smartphones.
While Samsung is generally focused on foldable smartphone designs for the future, a new Samsung patent came to light last month from the South Korean Patent Office that showed Samsung's engineering design team had gone astray with a triple-decker smartphone design.
The design is the the buzz of the day in certain Android news circles. I have no understanding as to why this would appeal to anyone. I guess if you're a card player/gambler it might be fashionable - but seriously, it's an insane idea in the negative sense of the meaning. If you see it otherwise, please send in your comments below.
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