Skip to main content

Samsung sees Q1 profit plummet 60%

By

Samsung’s Q1 earnings are in and, as the company itself predicted, they don’t make for pretty reading.

The Korean giant saw revenue for the three-month period fall by 13 percent year-on-year to 52.4 trillion KRW, around $45 billion. Meanwhile, operating profit for Q1 2019 came in at 6.2 trillion KRW, that’s a whopping $5.33 billion but it represents a decline of huge 60 percent drop from the same period last year. Ouch.

Samsung’s Q1 last year was admittedly a blockbuster quarter, but these are massive declines.

What’s going on?

Samsung said that sales of its new Galaxy S10 smartphone were “solid” but it admitted that its memory chip and display businesses, so often the most lucrative units for the company, didn’t perform well and “weighed down” the company’s results overall. Despite those apparent S10 sales, the mobile division saw income drop “as competition intensified.” Meanwhile, the display business posted a loss “due to decreased demand for flexible displays and increasing market supplies for large displays.”

That’s all about on par with what analysts were expecting following that overly-optimistic Q1 earnings forecast made earlier this month.

The immediate future doesn’t look terribly rosy, too.

Samsung said the overall memory market will likely remain slow in Q2 although DRAM demand is expected to recover somewhat. It isn’t expecting too much to change for its display business, either, although “demand for flexible smartphone OLED panels is expected to rebound” which is where the company plans to place particular focus.

On the consumer side, where most readers know Samsung’s business better, Samsung expects to see improved sales in Q2, where buying is higher. It also teased a new Note, 5G devices — which will likely limited to Korea, we suspect — and that foldable phone.

The Galaxy Fold has been delayed after some journalists found issues with their review units — TechCrunch’s own Brian Heater was fine; he even enjoyed using it. There’s no specific mention in the quarterly report of a new launch date but it looks like the release will be mid-June, that’s assuming what AT&T is telling customers is accurate. But we’ll need to wait a few weeks for that to be confirmed, it seems.



from TechCrunch https://tcrn.ch/2vt1Dwv
via Technology
Labels:

Comments

Post a Comment

Popular posts from this blog

The Nintendo Switch has been the US’s bestselling console for 23 straight months

By
Photo by James Bareham / The Verge It’s been a good two years for the Nintendo Switch. According to Nintendo, the gaming tablet has been the bestselling console in the US for 23 straight months. And according to data from the NPD Group, it just had its best October ever, moving 735,926 units of both the Switch and Switch Lite in the US. The company says that represents a 136 percent increase compared to last year. To date, the Switch has sold 22.5 million units in the US, and last week Nintendo revealed that more than 68 million units have been sold globally . “We’re excited about our momentum,” says Nick Chavez, Nintendo of America’s SVP of sales and marketing. Chavez puts the company’s big October down to two main factors. One is a better supply of stock; this year in particular, it’s often been hard to find a Switch on store shelves. This has only been exacerbated by increased demand due to a combination of the pandemic and the breakout success of Animal Crossing: New Horizons . ...
Post a Comment
Read more

Instagram accidentally reinstated Pornhub’s banned account

By
After years of on-and-off temporary suspensions, Instagram permanently banned Pornhub’s account in September. Then, for a short period of time this weekend, the account was reinstated. By Tuesday, it was permanently banned again. “This was done in error,” an Instagram spokesperson told TechCrunch. “As we’ve said previously, we permanently disabled this Instagram account for repeatedly violating our policies.” Instagram’s content guidelines prohibit  nudity and sexual solicitation . A Pornhub spokesperson told TechCrunch, though, that they believe the adult streaming platform’s account did not violate any guidelines. Instagram has not commented on the exact reasoning for the ban, or which policies the account violated. It’s worrying from a moderation perspective if a permanently banned Instagram account can accidentally get switched back on. Pornhub told TechCrunch that its account even received a notice from Instagram, stating that its ban had been a mistake (that message itse...
Post a Comment
Read more

MVP versus EVP: Is it time to introduce ethics into the agile startup model?

By
Anand Rao Contributor Share on Twitter Anand Rao is global head of AI at PwC . The rocket ship trajectory of a startup is well known: Get an idea, build a team and slap together a minimum viable product (MVP) that you can get in front of users. However, today’s startups need to reconsider the MVP model as artificial intelligence (AI) and machine learning (ML) become ubiquitous in tech products and the market grows increasingly conscious of the ethical implications of AI augmenting or replacing humans in the decision-making process. An MVP allows you to collect critical feedback from your target market that then informs the minimum development required to launch a product — creating a powerful feedback loop that drives today’s customer-led business. This lean, agile model has been extremely successful over the past two decades — launching thousands of successful startups, some of which have grown into billion-dollar companies. However, building high-performing product...
Post a Comment
Read more