Samsung operating profit collapsed by 60%, but the company hopes to sell Galaxy S10

Today, Samsung Electronics has released preliminary financial results for the first quarter of 2019.

Previously, the manufacturer has warned that profits may be lower than expected figures, but the figures were even worse.

How many?

So, in January — March, Samsung’s operating profitamounted to 6.2 trillion won ($ 5.45 billion). And this is 42.6% less than in the previous quarter (10.80 trillion won), and 60.4% lower than the profit for the corresponding period last year (15.64 trillion won). This is the biggest drop in profits since 2014.

At the same time, sales amounted to 52 trillion won ($ 45.7 billion) - 14.1% less year on year and 12.3% compared with the previous quarter.

Despite the fall in performance, the company's shares rose by 0.3%.

Why?

The decline in indicators associated with falling prices formemory chips, increasing competition in the smartphone market and declining demand for displays for gadgets. However, Samsung has high hopes for the flagship Galaxy S10, which only recently went on sale and have not yet been able to affect the performance for the entire quarter.

But the division of semiconductor products continues to generate stable profits.