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

Samsung Electronics today published preliminary financial results for the first quarter of 2019.

The manufacturer had previously warned that profits could be lower than expected, but the results turned out to be even worse.

How many?

So, in January-March, Samsung's operating profitamounted to 6.2 trillion won ($5.45 billion). 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), down 14.1% year-on-year and 12.3% compared to the previous quarter.

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


The decline in indicators is associated with falling priceson memory chips, increased competition in the smartphone market and decreased demand for displays for gadgets. However, Samsung has high hopes for the flagship Galaxy S10, which only recently went on sale and has not yet been able to influence the indicators for the entire quarter.

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