Samsung Electronics had already notified its investors that this quarter the company was going to make a lot less money. Recently, Samsung has unveiled its earnings for Q1 and the numbers show profits slipped 60 percent when compared to what the company had in 2018. The profit slid from $13.4 billion to $5.3 billion.
For this slide, Samsung is not accusing its flagship phones of anything at all. As per the company, they have sold the new Galaxy S10 lineup very well, along with Samsung has shipped about 78 million phones and almost 5 million tablets in the same quarter. The company has projected to ship quite more phones in the next quarter as well. As per the company, the reasons for the weakening in sales are mainly the same as that of Q4, which says about the drop in demand for memory chips, which is like bread and butter for Samsung. The decline was also because of the decrease in the demand for displays. According to the company, the scenario should recover in the second half of 2019, with additional demand for flash memory in smartphones and in servers. Samsung added that it is, in fact, shipping more modems and processors even as a request for its image sensors are decelerating and the last one happened because of its weak smartphone seasonality.
Initially, the company has not talked about its struggling Galaxy Fold foldable smartphone in the earnings call, but Samsung did manage to answer about the smartphone. The company stated that it would soon reveal an updated launch which is slated within the coming few weeks. It is likely to get launch in the second half of 2019. For the second half of the year, in spite of increased market competition, the company believes smartphone sales to rise which would be led by Samsung’s new smartphones in all sections.