Samsung revenue drops 13.5% to 52.4 trillion won in first quarter

Samsung Electronics announced that its revenue fell 13.5 percent to 52.4 trillion won during the first quarter of 2019.
Samsung IoT solutions
Samsung has generated revenue of 10.4 trillion won (9.74) from Consumer Electronics, 27.2 trillion won (28.45) from IT & Mobile communications, 20.62 trillion won (28.35) from Device Solutions and 6.12 trillion won from Display Panel (7.54) during the first quarter of 2019.

Samsung said its smartphone revenue increased considerably quarter on quarter thanks to strong sales of the Galaxy S10. Samsung said its sales volume gains were modest due to a reorganization of mid-range and below devices.

Samsung said its smartphone sales volume will increase slightly in Q2 quarter on quarter as sales of the S10 series remain strong and the new A series gains a positive market response. It will strengthen competitiveness through innovations such as 5G devices, and the A80, and by a reorganization of the mass-market products, which puts the A series at the center.

Samsung said its network business, which supplies equipments to telecom operators, has achieved strong earnings thanks to accelerating commercialization of 5G in Korea.
Samsung said it is leading the global 5G market and will be solidifying a foundation for growth by expanding supply in the initial markets of Korea and the US. Samsung will also continue efforts to expand overseas 4G LTE networks.

Samsung posted 60 percent drop in operating profit to 6.2 trillion won or $5.4 billion in the January-March quarter, hit by falls in chip prices and slowing demand for display panels.

Samsung’s core semiconductor business posted 64 percent drop in operating profit to 4.1 trillion won. Samsung’s display business reported 560 billion won in loss.

The world’s top maker of smartphones said its mobile business posted a 40 percent drop in operating profit to 2.3 trillion won.

The South Korean tech giant delayed global sales of its foldable phone after several reviewers discovered problems with the display.

Memory chip makers including Samsung have been hit by a weaker smartphone market and a fall in server demand amid a broader economic slowdown.

Memory chip maker SK Hynix, Samsung’s smaller rival, last week posted the slimmest quarterly operating profit in more than two years, but said it was confident chip demand would recover later this year as its server DRAM customers boosted investments.