Affected by the Huawei case, amortized by Apple: the results of Samsung at the lowest since 2016

Samsung

Last week, Samsung released its forecast for the second quarter of 2019. The company predicts its shareholders a major decrease in its profit ... and to a lesser extent its income. 

Bad luck with Samsung. In its latest forecasts, the firm announced to its shareholders an upcoming 56% decline in profit, for $ 5.56 billion. Expected for the second quarter of its fiscal year 2019, this stall must be accompanied by Samsung a loss of 4% of income for $ 47.89 billion. A situation that the Korean giant had not known for more than two years.

Samsung tributary of its competitors

Indeed, the figures provided by Samsung are reminiscent of the perilous situation experienced by the group in the months following the fiasco of Galaxy Note 7 on the market. Flagship brand launched between August and October 2016, he had been recalled worldwide at the end of the year following cases of overheating and explosion. 

If Samsung does not disclose the official reasons for these new difficulties, analysts tend to explain this dramatic fall in profit by the recent mishaps of Huawei, an important customer for Samsung, which can no longer sell him some chips - memory in particular. However, the current flow of the Chinese giant is not without facilitating the task of Samsung in some markets, explains the Verge.

When Apple saves Samsung's Q2 2019

Rest Apple, which plays here a salivating role with regard to a Samsung in distress. The predictions of the Korean manufacturer could have been worse without the positive balance of its display division, boosted by a one-time payment of $ 684 million from Apple. A payment agreed between the two groups as compensation for OLED screen orders ... lower than those initially promised by the Cupertino company. 

Recall that Samsung must launch its Galaxy Note 10 on August 7. A smartphone potentially synonymous with new momentum for the firm, which must always communicate a specific launch date (and especially final) for its foldable smartphone Galaxy Fold - the latter requiring heavy investment and whose success is still very subject to guarantees.