Samsung Electronics announced its second-quarter financial results. The company saw a consolidated revenue of KRW 56.13 trillion in the quarter with KRW 6.6 trillion operating profit. The decline in the profit can be attributed to the slowing sales of smartphone and price declines in the memory chip market. However, the Network Business posted good results on the account of the commercialization of 5G service in South Korea.
Samsung’s new appliance products, refrigerators and washing machines saw strong sales amid a decline in the Television segment where profits fell due to the competition.
Samsung’s semiconductor business posted consolidated revenue of KRW 16.09 trillion and operating profit of KRW 3.4 trillion for the quarter. Samsung’s memory business saw demand for NAND and DRAM, Samsung believes that despite weak market conditions for memory, the demand will grow in the second half.
Samsung’s display panel business generated KRW 7.62 trillion in consolidated revenue and KRW 0.75 trillion in operating profit for the quarter. The IT and Mobile Communications Division posted KRW 25.86 trillion in consolidated revenue and KRW 1.56 trillion in operating profit for the quarter. This was due to the increased sale of the new Galaxy A series, however, Samsung’s flagship devices, the Galaxy S10 series had weak sales.
The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, recorded KRW 11.07 trillion in consolidated revenue and KRW 0.71 trillion in operating profit for the second quarter of 2019.
Through the rest of the year, Samsung will focus on marketing new lifestyle products for consumers, such as refrigerators and AirDressers. The Company will also continue to strengthen the B2B business which includes built-in appliances and system air conditioners.
The main portion of the Company’s 2019 CAPEX is earmarked for building infrastructure to address demand beyond 2019, and a larger percentage of this year’s investment will be made in the second half.
On 7th August, Samsung will be launching its Galaxy Note 10 and in September the Galaxy Fold will be made available once again. This should give Samsung a good opportunity to close in on the competition in the premium smartphone segment.