Reports quarterly working revenue of KRW 6.2 trillion on gross sales of KRW 52.Four trillion
Weak reminiscence chip demand weighs on earnings however Galaxy S10 gross sales stable
Samsung Electronics posted KRW 52.Four trillion in consolidated quarterly income and KRW 6.2 trillion in quarterly working revenue.
First quarter earnings had been weighed down by the weak spot in reminiscence chips and shows, though the newly launched Galaxy S10 smartphone logged stable gross sales.
The Semiconductor Business noticed a drop in reminiscence chip costs as stock changes continued at datacenter corporations, whereas demand for high-density reminiscence for cell phones elevated due to new flagship smartphones. Earnings improved on the System LSI and Foundry companies over the gross sales of smartphone utility processors (APs).
The Display Panel Business reported a quarterly loss on account of decreased demand for versatile shows and growing market provides for giant shows.
In the IT & Mobile Communications (IM) Division, regardless of stable gross sales of the Galaxy S10, profitability within the cellular enterprise declined YoY as competitors intensified within the low- to mid-range section. In addition, amid softer demand within the total smartphone market, revamping of the Company’s mass-market lineup led to a YOY lower in gross sales quantity.
Earnings from the Network Business elevated, buoyed by the launch of 5G telecommunication service in Korea. Sales of premium TVs comparable to QLED TVs and ultra-large measurement fashions contributed to the YOY earnings development within the Consumer Electronics (CE) Division.
Looking forward to the second quarter, Samsung expects restricted enchancment within the reminiscence chip market, as demand will seemingly start to enhance for main functions comparable to cellular merchandise however worth declines will seemingly proceed.
Demand is seen growing for APs and CMOS Image Sensors within the System LSI and Foundry companies. For Displays, Samsung expects greater demand for inflexible panels.
The IM Division is ready to concentrate on flagship merchandise such because the world’s first 5G smartphone and the improved mass-market lineup with progressive cameras and show options. The CE Division is prone to report development within the second quarter on sturdy seasonal demand for air conditioners and gross sales of recent premium TVs.
For the second half of 2019, the Company expects reminiscence chip demand for high-density merchandise to extend, however uncertainties within the exterior atmosphere will persist. An additional restoration is seen for the Display Business as demand for versatile screens is ready to rise on new smartphone launches.
Growing competitors within the mature TV and smartphone markets is anticipated to pose a problem within the second half, and Samsung will concentrate on strengthening its management within the premium section.
Over the mid- to long-term, the Company goals to strengthen competitiveness of key companies by diversifying functions and delivering improvements in elements and new gadget kind components. Samsung can even proceed to broaden its capabilities in automotive expertise, leveraging HARMAN’s options, and in synthetic intelligence.
In the primary quarter, Samsung Electronics’ capital expenditure totaled KRW 4.5 trillion, together with KRW 3.6 trillion spent on semiconductors and KRW 0.Three trillion on shows.
Semiconductor Sees 2H Demand Improvement Despite Uncertainties
The Semiconductor Business posted consolidated income of KRW 14.47 trillion and working revenue of KRW 4.12 trillion for the quarter.
Overall, the Memory Business noticed demand for NAND and DRAM steadily weaken amid macroeconomic uncertainties, weak seasonality and stock changes by datacenter companies. This weak spot was partially offset by elevated adoption of high-density reminiscence merchandise for cellular and launches of flagship smartphones.
In the second quarter, the general reminiscence market is prone to stay sluggish throughout weak seasonality, though the Company expects demand for some…
