Samsung Electronics Co. said Tuesday its second-quarter net profit edged down 0.09 percent on-year amid weak returns from the smartphone business, although the chip business posted another quarterly record profit. During the second quarter, its semiconductor business generated 11.61 trillion won ($10.39 billion) in operating profit, almost 80 per cent of the entire operating income.
Apple's primary business comes from iPhone sales, and with the iPhone X (review) being sold in a large number of units, the company managed to generate a revenue of $53.2 billion, an operating profit of $12.6 billion and an operating-profit-to-sales ratio of 23.7%. The net income slightly fell on higher corporate tax.
The local currency's weakness to its major peers, except the greenback, negatively influenced a net 400 billion won (358 million USA dollars) worth of operating profit compared with the prior quarter.
Operating profit came to 14.87 trillion won, up 5.71 percent from the previous year.
The main culprit for Samsung's lackluster results was handset sales. The company's network infrastructure division turned in "solid growth", however, thanks to purchases of LTE network hardware by "key global customers".
The chip division's operating profit accounted for nearly 80 percent of Samsung's total profit in the quarter.
Demand for Samsung's flexible OLED panels also dropped, while LCD shipments fell in price and quantity.
Another feature you may find even more useful than DeX is Samsung's S Pen stylus, which comes in the box with the Galaxy Tab S4, lets you jot notes and draw doodles. But it expected challenges in the mobile business going forward. The set businesses will also benefit from the introduction of new form factors and innovative technologies to support growing demand for connected devices.
The Korean tech giant expects continued OLED panel growth to drive higher earnings in the second half of the year.
The company said it also plans to expand the scope of services powered by artificial-intelligence technology, and seek to improve connectivity with voice-recognition system Bixby and mobile payment tool Samsung Pay. Mid- to long-term, the company will focus on developing chipsets for 5G, multiple cameras and display panels, seeking to achieve higher growth compared to that of the market.
The company made an operating profit of 14.87trn won ($13.3bn) on sales of 58.4trn won ($52.1bn) and revenue was down 4pc year on year. Sales of Galaxy S9 and other flagship smartphones declined while it had to spend more marketing expenses to promote phones.
As for the short term, Samsung said that competition would be greater during the second six months of 2018, as new models of smartphones are released, prompting it to launch its new Galaxy Note at an earlier time than normal.