Samsung Revenues Fell 6 Percent in Q2 on Declining Smartphone Sales

Samsung reports that it earned an operating profit of $521.5 million on revenues of $46.7 billion, with the latter declining 6 percent year-over-year (YOY) due to a decline in smartphone shipments.

So let’s focus on that part of Samsung’s business.

“Sales decreased sequentially for the Mobile eXperience (MX) business as the effect of the Galaxy S23 launch from Q1 faded,” the firm noted in its announcement. “Mass market recovery was also delayed due to the continued economic downturn, affecting Q2 sales. Nevertheless, the Galaxy S23 series was able to achieve higher results than its predecessor in the first half, in terms of both volume and value.”

Samsung’s MX business unit delivered an operating profit of $2.37 billion on revenues of $19.9 billion in the quarter. Looking to the future, Samsung expects the overall smartphone market to return to YOY, especially in the premium market. Similarly, the overall tablet market is expected to stay mostly flat, though the premium tablet market should see YOY gains.

Helping matters, Samsung just launched its Galaxy Z Flip 5 and Galaxy Z Fold 5 series premium folding smartphones along with new tablets and wearables. The firm will also introduce various sales programs through partners to push more Galaxy S23 and Galaxy A series phones in the current quarter.

“Through such activities and initiatives, the MX business intends to grow its annual revenue in 2023, while securing sold double-digit profitability through enhanced operational efficiency,” Samsung added.