Weak smartphone demand hits Samsung profits

Galaxy A

Galaxy A

Smartphones weren't the only area reporting weaker-than-expected sales for Samsung.

In mobile, demand for high-density storage for new smartphones and high-end models is likely to remain robust.

While Samsung's profit growth may have slowed, the company's chip sales have been stellar. However, the company reckons demand for its flexible OLED technology will improve in the second half of this year.

He didn't mention the Galaxy Note 9 by name, but it's no secret that we expect that to be the model announced on Aug, 9 at Samsung's Unpacked event. During the call with investors, executives promised that the Note 9, a new addition to Samsung's large-screened phone line, "offers exceptional performance for a reasonable price".

Strong demand for Samsung's memory chips resulted in the operating profit expansion.

The earnings are sharply down from the 11.69 trillion won net profit registered last quarter, when the company reported a 52 percent jump on year.

On the other hand, Samsung's handset business reported a big fall in quarterly profit from a year earlier. The sector generated a mere 2.67 trillion won in operating profit, tumbling 34.2 percent on year.

And a decline in mobile device sales - which fell by 22 per cent year-over-year and 18 per cent between the first and second quarters - carried a significant share of the blame.

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Outlook for the memory chip market remained rosy on demand for server and PC memories as well as new mobile phone launches.

Samsung appears to be taking that idea to heart.

In response to this pressure, Samsung is said to be planning a possible game-changer in the shape of the world's first foldable smartphone, due for release early next year. "In response, in order to secure our profitability, we will focus on expanding sales of our competitive new models in all segment [s], from flagship to mass models, and secure well organized and effective marketing campaigns".

Samsung's chipmaking unit, which dominates the global market, provides chips for the company's own devices as well as those of competitors including Apple.

Samsung then said it is preparing the release of micro LED TVs customized for businesses and households, respectively.

Samsung Electronics said it has allocated 8 trillion won in facilities investment for the second quarter.

It also comes with Samsung's "Make for India" feature - "Chat Over Video", which allows an uninterrupted video viewing experience while chatting.

Samsung said it also made a decision to hand out dividends of 354 won per shares, with the combined amount of 2.4 trillion won.

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