People aren’t that into the Galaxy S9, Samsung’s earnings show

Galaxy A

The company also said it's taking various steps to improve its competitiveness in the mobile business, including an early Galaxy Note 9 launch, cutting-edge technology, new form factors, and gaining leadership in 5G tech.

All in all, Samsung Electronics has finally been hit by the sluggish smartphone demand all around the world.

Samsung's DP business posted operating profits of KRW0.14 trillion on revenues of KRW5.67 trillion for the second quarter.

Samsung Electronics, which is an Apple Inc components supplier and smartphone rival, stated that operating profit from the mobile business recorded its steepest rate of decline since the first quarter of past year, with cheaper Chinese-made handsets putting pressure on margins.

Samsung predicted a sustained strength in the memory chip market and a rising demand for flexible OLED panels that would drive earnings higher in the second half. Revenue declined about 4.13 percent from previous year, due to softer sales of smartphones and display panels, despite robust demand for memory chips.

The profit growth in the memory chip business began to stabilize this year, but it is still the lion's share of the firm's bottom line.

"The semiconductor sector fell short of expectations but its outlook for the second half of this year is rather positive as demand for DRAM chips is solid". Another reason why Samsung feels the S9 didn't perform as well as expected was due to its high price.

Analysts expect Samsung's operating profit to reach over W17 trillion in the third quarter thanks to the booming semiconductor market. Until mow there were rumours that Samsung could use this display in its Galaxy X phone but now when the company is planning to bring in high-end features to its Galaxy A series phones, it wouldn't be wrong to expect the unbreakable OLED panels in Galaxy A series phones too.

Samsung has successfully managed to displace Xiaomi and regain the top spot in India's smartphone market.

"Consumers are losing the belief that the next version of a smartphone is actually smarter", Paul Swiercz, a management professor at George Washington University, told Bloomberg News. Both made the mistake of thinking that high-margin high-price phones were the way forward.

With UFS 3.0, storage will become faster, more energy efficient and is expected to be found in a lot of smartphones, including the Galaxy S10 and the Galaxy S10 Plus.

The IT and mobile communications business, the division the Galaxy S9 calls home, reported declines in year-on-year and quarter-on-quarter earnings.

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