We got the best Samsung deals! Galaxy S24 Ultra, Watch 6, Z Fold 5 or, Z Flip 5.

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

Notifications
    News for you

    Samsung estimates a massive 53% drop in profit for 2019

    Business
    By 

    Last updated: January 31st, 2020 at 10:49 UTC+01:00

    The first quarter of 2019 set the tone for a tough year when Samsung posted its lowest quarterly profit in three years. Samsung's lucrative semiconductor business saw its revenues shrink considerably due to slow demand and falling margins. This remained the story for the entire year even as some of Samsung's other divisions showed promise.

    Samsung today released its earnings guidance for the fourth quarter of 2019. When combined with the numbers for the first three quarters, the estimated operating profit for the quarter ending December 2019 represents a 53 percent profit decline in 2019 compared to 2018.

    2019 saw Samsung's operating profit being cut in half

    Samsung expects revenue for the fourth quarter of 2019 to come in at 59 trillion won or $50.5 billion. It estimates 7.1 trillion won or $6.02 billion in operating profit for the quarter, down 35 percent from the $9.2 billion operating profit it posted in Q4 2018. The company's total operating profit for 2019 based on the latest quarterly estimates comes out to 27.1 trillion won or $23.2 billion, a steep 53 percent decline compared to the $50.4 billion it earned in full-year profit back in 2018.

    We'll get a better idea of how Samsung's many divisions performed in the final quarter of last year when it releases the full earnings report by the end of this month. Analysts suggest that revenues from Samsung's semiconductor division may have partially recovered in Q4 2019 while its display division is expected to have posted lower profits due to weak demand.

    The company's profits have consistently taken a hit since Q3 2018 after earnings from the semiconductor division peaked. Demand and prices for memory chips both declined in subsequent quarters, and as this division was Samsung's cash cow, the impact was immediately visible on its balance sheet. That's largely why Samsung made 53 percent less in profits last year compared to 2018. Be that as it may, an operating profit of $23.2 billion is still nothing to scoff at.

    Source Business Earnings

    You might also like

    Samsung expects its 2023 profit to drop by 85% compared to last year

    Samsung expects its 2023 profit to drop by 85% compared to last year

    Last year was extremely challenging for Samsung, as smartphone and semiconductor chip sales were quite low. Those are the two most important product categories for Samsung. However, the company and even analysts expect this new year to be much better as sales are recovering. Today, Samsung Electronics posted its earnings guidance for the fourth quarter […]

    • By Asif Iqbal Shaik
    • 3 months ago
    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Three weeks after revealing its earnings guidance, Samsung Electronics revealed its full earnings data for Q3 2023. The South Korean firm's revenue was KRW 67.4 trillion (around $49.86 billion) during the July-August period, and its operating profit was KRW 2.43 trillion (around $1.79 billion). That's the highest quarterly profit the company achieved this year, and […]

    • By Asif Iqbal Shaik
    • 5 months ago
    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung has been going through tough times due to the downturn of the semiconductor chip segment, leading to huge losses for the company. However, it looks like the company is recovering from that downturn and narrowing losses in its semiconductor chip business. Samsung has reported earnings guidance for Q3 2023, revealing better-than-expected results. Its profits […]

    • By Asif Iqbal Shaik
    • 6 months ago
    Samsung’s battery business gets record profit, thanks to higher EV demand

    Samsung’s battery business gets record profit, thanks to higher EV demand

    A few days ago, Samsung Electronics announced a 95% drop in its operating profit due to the worst downturn in the history of semiconductor chips. However, the company's battery manufacturing and electronics material business, Samsung SDI, isn't doing so badly. In fact, it is thriving, and it has recorded its highest-ever second-quarter revenue and profit. […]

    • By Asif Iqbal Shaik
    • 8 months ago
    Samsung reveals Q2 2023 earnings, profit nosedives to 14-year low

    Samsung reveals Q2 2023 earnings, profit nosedives to 14-year low

    Samsung has been going through some tough times. Over the past year, its semiconductor chip business has seen a massive downturn amid global economic woes. Since most of the company's profits usually come from its semiconductor chips business, it has been hit hard. The South Korean firm unveiled its earnings estimate for Q2 2023, and […]

    • By Asif Iqbal Shaik
    • 9 months ago
    Samsung’s profits decline by a massive 95% on weak chip demand

    Samsung’s profits decline by a massive 95% on weak chip demand

    The global semiconductor demand has remained weak over the past year and that has significantly affected Samsung's ability to turn a decent profit. The firm's semiconductor division is its biggest cash cow and when it's under pressure, the effects are visible on the company's bottom line. Samsung has announced its Q1 2023 earnings today and […]

    • By Adnan Farooqui
    • 11 months ago