If the sales of its smartphones are doing very well, Samsung is paying the price drop of memory chips.
Net profit fell 56% year-on-year and revenue was 5%.
Falling memory chip prices severely penalize the South Korean group
For its third quarter of 2019, Samsung announced a turnover of $ 53 billion, down 5%, but also and above all a net profit in free fall of 56% to $ 6.7 billion. It's been three quarters in a row that the South Korean manufacturer sees its net result crumbling.How to explain such a situation, despite a turnover more than adequate? The problem comes once again from the activity of memory chips In recent months, the average price of these components has dropped significantly, forcing Samsung to trim on its margins while waiting for better days.
Strong smartphone sales pending the boom of 5G
Nevertheless, the company can console itself with the good health of its "smartphone" division, which has a turnover of 25 billion dollars, up 17% compared to 2018, and a profit of 2.5 billion dollars (+ 35% compared to last year).Samsung says it's the Galaxy Note 10 that pulls the results of the division up, the high-end phone flowing faster than the Galaxy Note 9 at the same time last year.
The Galaxy A range is also doing very well and Samsung has taken advantage of the fear of European consumers vis-à-vis Huawei smartphones, possibly deprived of Android in the coming weeks, increasing its market share on the continent to nearly 40%, a record in five years.
Samsung still seems to see the end of the tunnel and expects stronger sales of its smartphones, driven by the deployment of increasingly important 5G networks in the world. The manufacturer is also betting on the foldable, after the test halftone Galaxy Fold, and has already announced new concepts to democratize its screen technology.
Source: CNN
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