As predicted, a few more green shoots amid the bad headlines. I believe some of the S10s have 5G capability.
Samsung posts revenue and profit declines in 1Q19
Jessie Shen, DIGITIMES, Taipei
Tuesday 30 April 2019
Samsung Electronics has reported operating profits of KRW6.2 trillion (US$5.3 billion) on consolidated revenues of KRW52.4 trillion for the first quarter of 2019. The profit and revenue results show declines of 60% and 13%, respectively, on year.
Samsung's operating income and revenues for the first quarter also represent decreases of 42% and 12%, respectively, compared to the prior quarter.
"First quarter earnings were weighed down by the weakness in memory chips and displays, although the newly launched Galaxy S10 smartphone logged solid sales," said the company in a statement.
Samsung disclosed its semiconductor revenues were hit by falling memory chip prices in the first quarter. "Inventory adjustments continued at datacenter companies, while demand for high-density memory for mobile phones increased thanks to new flagship smartphones," the company noted.
Nevertheless, Samsung saw earnings improved at its system LSI and foundry units over the sales of smartphone application processors (APs) in the first quarter of 2019, the company continued.
Samsung's display panel business suffered losses in the first quarter, due to decreased demand for flexible displays and increasing market supplies for large displays, the company said.
Samsung's semiconductor business posted revenues of KRW14.47 trillion and operating profits of KRW4.12 trillion in the first quarter of 2019, while the display panel business generated KRW6.12 trillion in revenues and KRW0.56 trillion in operating losses.
In Samsung's IT & mobile communications (IM) division, profitability in the mobile business experienced an on-year drop in the first quarter despite solid sales of the Galaxy S10, the company indicated. Intensifying competition in the low- to mid-range segment dragged down the mobile unit profitability during the quarter.
Samsung's IM division posted operating profits of KRW2.27 trillion on revenues of KRW27.2 trillion in the first quarter of 2019.
Samsung expects "limited improvement" in the memory chip market during the second quarter. Memory demand will likely begin to improve for major applications such as mobile devices, but price declines will likely continue, the company said.
From digitimes.com |
