Samsung’s Smartphones Took Another Hit in Most Recent Quarter
- Paul Thurrott
- Apr 30, 2019
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Samsung announced its most recent quarterly earnings. Among the notable news: Profits from its smartphone business fell by 40 percent year-over-year.
Samsung posted an operating profit of $5.32 billion on revenues of $44.94 billion for the quarter ending March 31. The firm noted that its earnings were “weighed down” by the weakness in memory chips and displays, although the newly launched Galaxy S10 smartphone “logged solid sales.”
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Despite this, Samsung posted its worst quarterly profits in two years, and profits in its smartphone business fell by 40 percent YOY to $1.97 billion. It also noted that its smartphone business experience at YOY “decrease in sales volume” thanks to “softer demand in the overall smartphone market.”
As bad, Samsung was forced to delay its first-ever folding phone, the Galaxy Fold, this month because of rampant reliability issues. But Samsung says it will figure out the problems with the device and launch it later in the year.
“Samsung Electronics have been preparing Galaxy Fold for a long period and there’s no change to our direction to provide premium experiences for customers desiring innovation,” Samsung vice president Lee Jong-min said. Samsung also plans to deliver its first 5G handset this quarter.
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Conversation 13 comments
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Stooks
<p>Still, by a huge margin, the biggest Android phone maker on the planet. Also they sell more phones than anyone else, including Apple.</p><p><br></p><p>Samsung is a very diversified so this drop in smartphone sales, while not good, is not like the drop in iPhone sales for Apple.</p><p><br></p><p>If I was buying a new Android phone right now, the S10E would get my money.</p>
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provision l-3
<blockquote><em><a href="#424279">In reply to Stooks:</a></em></blockquote><p>Samsung's revenue was down 14%. "The drop in the iPhone" caused Apple to be down by 5%. You are correct that they aren't the same it does appear to be a bit worse for Samsung. Further if Apple had seen a 40% drop in smartphone revenue, like Samsung did, Apple still would have made more money this quarter than Samsung. People don't seem to get how large Apple's revenue stream is outside of iPhone sales which is somewhat understandable because the iPhone revenue is so f-ing big </p>
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skane2600
<p>The smartphone market is going through the same saturation scenario that PCs did, it just happened a lot faster. Now all we need to do is to find another technology we can claim is "replacing" smartphones to account for this drop in a manner similar to the claim how smartphones were "replacing" PCs.</p>
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provision l-3
<blockquote><em><a href="#424352">In reply to skane2600:</a></em></blockquote><p>I'm thinking Tamagotchi comeback!</p>
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dontbe evil
<p>samesung like crapple … huawei or xiaomi all the way</p>