The slowdown in the global smartphone market is starting to take a toll on Samsung Electronics Co.
Weak sales of its flagship smartphone, the Galaxy S9, drove down earnings but robust demand for premium TVs - thanks to soaring interest in the World Cup - and memory chips helped boost operating profit almost six%.
The South Korean company's net income fell short of analysts' estimates as the sluggish market hit demand for its Galaxy devices, even as Chinese rivals step up their competition.More news: Ohio State’s Meyer put on leave, investigation opened
Samsung's next big phone - literally huge, that is - is most likely the Galaxy Note 9.
The display business also suffered, with sales of OLED screens to Apple turning out to be weaker than expected, though Samsung does believe this segment will pick up later in the year following the reported arrival of two new OLED iPhones. It will ship with the Android 8.0 Oreo-based Samsung Experience UI out of the box with some new features that we hadn't seen on older budget Galaxy handsets.
Obviously though with all that added competition, it was always going to be hard for the likes of Apple and Samsung to maintain their success and it appears it's the latter company that is struggling most to keep with the times as a recent earning call to shareholders (as reported by The Verge) has revealed the flagship Galaxy S9 is not selling as well as hoped.
But total sales fell 4.1 percent year-on-year to 58.48 trillion won, with the company's consumer electronics and mobile businesses suffering. Samsung aims to bolster results through an increasingly diversified portfolio, coupled with its upcoming Note 9 and Galaxy S10.More news: Shocking brawl breaks out at McDonald's over 'free soft drink'
The smartphone market today isn't like what it used to be in years before now.
The Korean giant expects chip prices to remain strong in the coming months, citing continued demand for DRAM chips.
Samsung warned of stiffer competition in the second half due to the release of new models.
The company's semiconductor business achieved record operating profits of 11.6 trillion won, however, results missed analysts forecasts for 12 trillion won.More news: Giuliani: 'I want you to hear' Cohen tapes
Samsung shares slid 0.5 percent by 0254 GMT, compared with 0.1 percent drop in the broader market .KS11 .