Mobile Headwinds End Samsung's Stellar Profit Growth Run

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Revenue for the April-June period fell 4 percent to 58.5 trillion won, broadly in line with Samsung's earlier estimate.

Samsung Electronics Co Ltd 005930.KS posted its slowest quarterly profit growth in more than a year on Tuesday as the sluggish global smartphone market weighed on earnings, although the chip business continued to perform well.

91 Mobiles spotted the Samsung Galaxy Watch has just received its radio certification in Korea - after previously getting its Federal Communications Commission (FCC) approval in the USA earlier this month.

The South Korean tech giant said demand for memory chips, its biggest earnings contributor by far, would remain strong in the second half thanks to the growth of server data centers.

As teased, Samsung has launched a new mid-range smartphone - Galaxy On8 in India on Wednesday.

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The mobile business booked a 34 percent fall to 2.7 trillion won in quarterly operating profit, its biggest decline since the Galaxy S7 was its flagship model early previous year. "With Galaxy On8, we have emphasized more on the camera, which is one of the most used features by millennials today", said Sandeep Singh Arora Vice President Online Business of Samsung India. Looking ahead to the second half, OLED sales are expected to rebound on recovering demand for flexible displays.

Samsung is rumoured to be developing a phone with a bending display.

In response, Samsung would "seek to expand sales by introducing a new Galaxy Note earlier than usual", it added.

A report from ETnews, a Korean news outlet, indicates that Samsung is planning to include a triple-camera setup in an upcoming smartphone in the Galaxy A series, though there's no indication of when it will be released. Also, Samsung plans to strengthen price competitiveness and adopt advanced technology in the mass models.

Samsung is pinning its hopes on foldable phones to become the next big thing.

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This would mean the handset could go on sale in early 2019.

As we have mentioned above already, Samsung Galaxy J6 comes in two configurations in India.

"Operating profit in the semiconductor sector is likely to hit the largest-ever 13.7 trillion won in the next quarter, due to the high DRAM chip prices and increasing shipments of NAND flash memory products", said Park Yoo-ak, an analyst with Kiwoom Securities.

Samsung shares slid 0.5 percent by 0254 GMT, compared with 0.1 percent drop in the broader market .KS11 .

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