Samsung reckons its Q2 profits are down 56% from a year ago
Samsung has issued guidance to investors ahead of its Q2 earnings report, and it won’t make happy reading for those whose fortunes are tied up with the company.
The South Korean technology giants said that while profits were an impressive sounding 6.5 trillion won (around $5.6 billion or £4.4 billion), that’s a 56% drop year on year.
Revenue, meanwhile, is predicted to hit 56 trillion won (around $47.9 billion or £38 billion). Again, that’s a big number, but it is still Samsung’s lowest revenue total since Q3 2016 – around the time the company was dealing with the fallout from its Galaxy Note 7 recall.
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Samsung itself doesn’t provide commentary or justifications for its numbers, but analysts reckon Huawei’s problems with the United States government could impact the company’s chip business. In the long run, this could help Samsung if the bad PR damages Huawei sales in favour of Samsung, but that hasn’t been felt in the short term. More pressingly, any bump felt from Galaxy S10 sales in Q1 seems to have dried up for Q2.
To make this half-empty glass a little more full, it could have been worse for Samsung this quarter. Analysts speaking to Reuters believe that the company received a one-off payment of 800 billion won ($684 million) from Apple as its top-end iPhones – which use Samsung OLED screens – missed an agreed sales target.
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Samsung has previously said it expects smartphone and chip sales to pick up in the second half of the year, possibly with a little help from a little handset called the Note 10. We’ll just have to wait and see what the Q3 earnings report looks like.
Are Huawei’s troubles good or bad news for Samsung in the long run? Let us know what you think on Twitter: @TrustedReviews.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
