On Tuesday, Samsung profit 2019 for Q1 is reported to reach only $5.4 Billion. It is, unfortunately, the current lowest profit figure of Samsung from its quarterly report starting from Samsung profit margin 2016. The electronics company says memory chip makers were affected by the global weakening of the mobile phone market. As well as the reduced demand from different data centers.
Updated on 28 November 2022
Samsung Profit Loss about 40%
Compared to Samsung profit Q1 2018, the company has experienced about a 40% drop in their mobile business which equals a little less than $2 Billion. Moreover, the company expects that their Q2 operational profit figures will continue to reflect the weakness in displays, chip prices, as well as smartphones.
But in hope of recovery, they are forecasting that their profit would be better at the beginning of the second half of the year. This is of course with the help of the upcoming new Samsung phone models that range from low to high tech devices.
Disregarding the fact that Galaxy Fold, the first foldable smartphone of Samsung, was failed to pass the standards of the masses. It is said that the company has still no sign of changing its direction, which is moving forward in the path of foldable phones. This is according to the Vice President of Samsung, Lee Jong-min.
The South Korean electronics company purposefully postpone the launching of Samsung Galaxy Fold after the first ever foldable of the company receive negative reviews. These reviews emphasize the reviewers encounter of broken displays in just 2 days of using the device. More so, the company is now working on reinforcing the new phone’s design. However, it is still not yet announced when the refreshed Galaxy Fold will finally be available to the public.
Samsung Extends Display to iPhone
One of the most ironic things you might learn is the fact that Samsung is the primary supplier of Apple’s OLED displays. These displays were used for various iPhone devices such as the iPhone XS Max and XS. It is said that this will continue even the supply of memory from Samsung. These memory components are incorporated by different Apple products.
If Samsung experiences a weak profit on their first-quarter profit figure this year. And that is because of a weak chip price. It seems safe to assume that Apple too is likely to experience the same thing. But it could probably show on their March quarter results.
Furthermore, the December quarter of iPhone shipments goes down for about 15% year after year. Well, it is a bit saddening and it is said to be an effect of Samsung China’s weak sales. As well as its weak marketing performance. Like so, different local smartphone brands such as Xiaomi and Huawei began to catch up in the pace of iPhone using their high-tech phone models. This affects the competition while these two companies offer lower prices for their products.
The competition in the smartphone market is getting tighter and tighter. It is because of the emerging local competitors as well as other factors that affect the prices and production of different smartphone models and brands.