SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung’s Q2 2018 earnings show its record profit run is ending


Last updated: July 31st, 2018 at 10:01 UTC+02:00

Samsung has posted record profits in every quarter over the past year but it was expected that the momentum would be slowing down by the second quarter of this year. Many analysts had predicted that the company’s record profit run would be nearing an end by Q2 2018. The company’s own earnings guidance for the quarter suggested as much.

The company released its official Q2 2018 earnings results today and they show that the record profit run is indeed losing momentum. Overall revenues are down 4 percent compared to the same period last year.

Samsung’s Q2 2018 earnings

The earnings result is in line with the guidance that Samsung issued earlier this month. It posted 58.48 trillion won or about $52 billion in revenue compared to 61 trillion won or $54.7 billion in the same period last year, a 4 percent dip.

Samsung’s quarterly operating profit came in at 14.87 trillion won or $13.3 billion which represents a 6 percent increase compared to Q2 2017. Samsung posted an operating profit of 15.64 trillion won or $14.49 billion in Q1 2018. Q2 2018 is thus Samsung’s slowest quarterly profit growth in over a year.

The company puts the decline in revenues on softer sales of smartphones and display panels. Demand for memory chips remained robust. It’s a market that Samsung dominates but that wasn’t enough to prevent revenues from dipping this past quarter. The memory business did make a significant contribution to the higher operating profit.

The semiconductor business remains Samsung’s cash cow. It saw consistent demand for DRAM chips and NAND flash memory amid a decline in NAND prices. The display business remained under pressure this past quarter due to weak demand for flexible OLED panels with shipments and prices for LCD panels dipping as well.

The Consumer Electronics Division’s profits were lifted due to stronger sales of premium TVs such as the QLED models due to seasonality brought on by the global football event. Samsung expects demand for its memory chip products to remain strong going forward. Flexible OLED shipments may rise as well.

Business Earnings
Load 3 comments

You might also like

Samsung’s Q1 2022 profit jumps 51%, thanks to strong chip and sm …

Earlier this month, Samsung had posted its revenue estimates for Q1 2022. Today, the company published actual …

  • By Asif Iqbal Shaik
  • 2 months ago

Samsung likely to post 50% higher operating profit for Q1 2022

Samsung announced its Q1 2022 earnings estimates earlier today. Thanks to solid gains through semiconductor ch …

  • By Asif Iqbal Shaik
  • 3 months ago

Samsung SDI profit rises 14.6% as EV car sales increase worldwide

Earlier today, Samsung Electronics unveiled its Q4 2021 earnings. Now, Samsung SDI, the South Korean tech gian …

  • By Asif Iqbal Shaik
  • 5 months ago

Samsung’s Q4 2021 profit reaches four-year high, thanks to stron …

A few days ago, Samsung had revealed its earnings estimates for the fourth quarter of 2021. Earlier today, the …

  • By Asif Iqbal Shaik
  • 5 months ago

Samsung posts record quarterly revenue in Q3 2021, thanks to chips, fo …

Earlier this month, Samsung had announced that it is expecting the highest-ever quarterly revenue during Q3 20 …

  • By Asif Iqbal Shaik
  • 8 months ago

Samsung expecting highest-ever quarterly revenue in Q3 2021

Samsung has revealed its earnings guidance for the third quarter of this year. According to the electronics gi …

  • By Asif Iqbal Shaik
  • 9 months ago