Samsung’s Smartphones Took Another Hit in Most Recent Quarter

Posted on April 30, 2019 by Paul Thurrott in Android, Mobile with 13 Comments

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.”

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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Comments (13)

13 responses to “Samsung’s Smartphones Took Another Hit in Most Recent Quarter”

  1. lvthunder

    That sounds like a worse hit then Apple took.

  2. Stooks

    Still, by a huge margin, the biggest Android phone maker on the planet. Also they sell more phones than anyone else, including Apple.

    Samsung is a very diversified so this drop in smartphone sales, while not good, is not like the drop in iPhone sales for Apple.

    If I was buying a new Android phone right now, the S10E would get my money.

    • warren

      In reply to Stooks:

      I just made the switch from an older iPhone to the S10e. I'm really, really impressed. There's an almost overwhelming number of cool little features tucked away here and there. And if you replace the standard app launcher with Microsoft Launcher and get it configured nicely, there's really no going back to the iPhone after that.

      • CompUser

        In reply to warren:

        I also use the Microsoft Launcher on my Android phone, and just as you say there's really no going back to the iPhone after using Microsoft Launcher, I say there's really no going back to the standard Android launcher either. Neither my wife or son use Microsoft Launcher on their Android phones, and to me, their home-screens are a mess in comparison.

    • provision l-3

      In reply to Stooks:

      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

  3. skane2600

    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.

  4. dontbe evil

    samesung like crapple ... huawei or xiaomi all the way

  5. mattemt294

    The giant leap phones made in quality mixed with the yearly upgrade model is going to kill revenues. People don’t need to drop 800-1000$ a year when last years model is still just as good.

  6. curtisspendlove

    Interesting...their smartphone profits nearly folded in half...

    I’m here all week, folks. Try the veal!