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Friday, July 06, 2018
Galaxy S9 and OLED Sales Could Not Keep Samsung's Pace of Growth


Samsung Electronics estimated on Friday earnings grew at the slowest pace in more than a year in the second quarter, with weak smartphone sales likely to offset record high chip earnings.

The maker of Galaxy phones reported that operating income rose to 14.8 trillion won ($13.2 billion) in the three months ended June, according to preliminary results released Friday.

Weaker sales of its Galaxy S9 devices unveiled in the first three months of the year are starting to have an impact on the South Korea-based company, even as it dominates in both DRAM and NAND markets. Sales of organic light-emitting diode screens to Apple have also not lived up to expectations, while the growth of semiconductor prices has been slowing.

Sales for the second quarter fell to 58 trillion won. Samsung won't break out divisional performance until it releases final results later this month.

While Samsung has not revealed detailed figures for the Galaxy S9 series, the combined sales of the smartphones are estimated to have reach some 28 million units, a figure hovering far below the Galaxy S8 series' 37.5 million units in 2017 and the Galaxy S7 series' 48.5 million units in 2016.

The display segment is also expected to post weak earnings on falling price of LCD panels.



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