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Samsung sees Q1 profits plummet 60% – TechCrunch



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Q1 revenues of Samsung's and the company itself predicted that they do not make for pretty reading.

Korean giant saw revenues for the three month period falling by 13 percent year on year to 52.4 trillion Korean won, about $ 45 billion. At the same time, operating income for the 1st quarter of 2019 came in 6.2 trillion Korean won, it is a whopping $ 5330000000, but it represents a huge drop in the fall of 60 percent from the same period last year. Ouch.

Q1 Samsung last year, admittedly blockbuster quarter, but it is a massive reduction.

What's going on?

Samsung says that sales of the new smartphone Galaxy S10 are "hard", but admitted that his memory chip and display businesses, so it is often the most profitable division of the company, did not work well and "burdened" the results of the company as a whole. Despite these obvious selling S10, the mobile division saw revenues fall "as the competition intensifies." At the same time, the display business posted a loss "because of the decline in demand for flexible displays and an increase in supply on the market for large displays."

It's all about on par with what analysts expected following gains Q1 overly optimistic forecast made earlier this month.

The immediate future does not look terribly rosy, too.

Samsung said that the overall memory market is likely to remain slow in Q2, although DRAM demand is expected to recover somewhat. He did not expect too much to change to its display business, either, although "demand for flexible smartphone OLED-panels is expected to rebound," which is a & # 39; is where the company plans to focus on.

On the consumer side, where most of the readers know better business from Samsung, Samsung expects to see an improvement in sales in Q2, where to buy & # 39 is higher. He also teased a new note, 5G device – which is probably limited in Korea, we suspect – and that difficult phone.

Fold Galaxy was arrested after some journalists have found problems with their review units – TechCrunch's own Brian Heater It was good; He even liked to use it. There is no specific mention in the quarterly report on the new launch date, but it looks like the release will be in mid-June, when the condition that AT & T customers to say, with & # 39 is accurate. But we will have to wait a few weeks, which should be confirmed, it seems.

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