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’s Q2 profit likely took a big hit due to poor memory chip sales

    Business
    By 

    Last updated: July 4th, 2019 at 12:18 UTC+02:00

    Samsung’s smartphones may get a lot of media coverage, but they are not the major contributor to the company’s bottom line. That title has been held by the company’s semiconductor business for many years now. So, when the US government came down heavily on Huawei, more than helping Samsung’s smartphone revenue, the move appears to have harmed the company’s semiconductor business as it counts Huawei as a client.

    A report in Reuters says Samsung Electronics’ Q2 profit may be halved due to a substantial drop in memory chip sales. The situation is believed to be further exacerbated by Huawei’s growing woes, resulting in a likely drop in overall quarterly profit when Samsung reports its preliminary earnings on Friday. If the earnings pan out as predicted, it will be the Korean company’s lowest in nearly three years. Analysts believe Samsung will report a 60% drop in April-June operating profit at 6 trillion won ($5.14 billion).

    The memory chip market is reeling from oversupply, bringing down the prices in an already slowing market. Analysts believe Samsung’s recovery is at least a few quarters away. Though the Korean tech giant stands to gain in the global smartphone market where Huawei is currently the second largest vendor, the likely gains are no match to the erosion of profits from its semiconductor business which accounts for nearly two-thirds of the company’s overall profit.

    Business EarningsHuaweiSamsung Semiconductor

    You might also like

    Next-gen Galaxy phones will have faster storage for on-device AI

    Next-gen Galaxy phones will have faster storage for on-device AI

    It's been a couple of years since Samsung Semiconductor announced the UFS 4.0 non-volatile memory for mobile devices. Samsung has since used UFS 4.0 for the Galaxy S23 series, the 2023 foldable phones, and the latest Galaxy S24 lineup. Now, the company is getting ready to advance to the next step. Samsung Semiconductor revealed a […]

    • By Mihai Matei
    • 5 days ago
    Samsung to launch its own AI accelerator chip called Mach-1 in 2025

    Samsung to launch its own AI accelerator chip called Mach-1 in 2025

    Samsung launched its first AI phone, the Galaxy S24, earlier this year. Before that, the South Korean firm launched its own Large Language Model (LLM) called Samsung Gauss, which powers some of the AI features on the Galaxy S24. It is reported that Samsung will launch its own AI accelerator chip next year. Samsung's first […]

    • By Asif Iqbal Shaik
    • 6 days ago
    Samsung expects $100 million revenue from chip packaging business

    Samsung expects $100 million revenue from chip packaging business

    Samsung Electronics held its 55th annual general shareholders meeting today at the Suwon Convention Center in Suwon, Gyeonggi-do, South Korea. The company revealed its strategy for this year and expects revenue of $100 from its chip packaging business. The company's 55th annual general shareholders meeting was attended by general shareholders, institutional investors, and top-level management […]

    • By Asif Iqbal Shaik
    • 6 days ago
    Samsung could get $6 billion grant from the US for chip plants

    Samsung could get $6 billion grant from the US for chip plants

    Samsung Electronics, one of the biggest chip-making firms worldwide, has grand plans to make advanced semiconductor chips in the US. To help with its plans, the US government had announced grants and tax sops. The South Korean firm is now close to getting a huge helping hand from the US government. A $6 billion grant […]

    • By Asif Iqbal Shaik
    • 2 weeks ago
    Samsung may use SK Hynix’s method to manufacture HBM3 chips

    Samsung may use SK Hynix’s method to manufacture HBM3 chips

    According to a new report from Reuters, Samsung Electronics will soon start using the same technology as SK Hynix does to manufacture HBM3 chips. Samsung uses the non-conductive film (NCF) method to stack layers of chips in high bandwidth memory (HBM) chips. Reportedly, this method works well for chips with a lower number of layers […]

    • By Abid Iqbal Shaik
    • 2 weeks ago
    Samsung has a plan to reap more profits this year

    Samsung has a plan to reap more profits this year

    2023 was a bad year for Samsung, as the demand for chips fell along with their prices. The company's cash cow reported a loss for the first time in its history. As a result, Samsung Electronics' profit was the lowest in recent years. However, things are expected to improve in the coming months, and Samsung […]

    • By Asif Iqbal Shaik
    • 2 weeks ago