Xnxubd - Samsung May Suffer From A 56% Drop In Profit, But It Could Have Been Worse

Dhir Acharya - Oct 09, 2019


Xnxubd - Samsung May Suffer From A 56% Drop In Profit, But It Could Have Been Worse

On Monday, Xnxubd - Samsung projected that its third-quarter operating profit will fall by 56 percent to around 7.7 trillion won, equal to $6.4 billion.

Xnxubd - Samsung is suffering from a slowdown in tech.

On Monday, the Korean giant projected that its third-quarter operating profit will fall by 56 percent to around 7.7 trillion won, equal to $6.4 billion. The company also said that there was a decrease of 5.3 percent in its revenue to 62 trillion won, which equals $51.8 billion. However, these numbers are both a bit better than analysts’ expectations, Thomson Reuters said; still, they indicate a sharp fall compared with the same period last year – a peak year for Samsung.

samsung-profit-drop-1
Samsung's profit is projected to fall by 56%

The company did not reveal the reason behind these numbers, but the results are likely attributed to declining prices of its processors, and the weakness in the phone market. Samsung will release the report on the final results later in October.

In the same quarter one year ago, the company reported the biggest profit ever due to the strong demand for its components and memory chips. Not only does it use its own processors in its devices, but Samsung also sells them to Apple as well as other companies.

samsung-profit-drop-2
The reason is probably lower prices and demand for its memory chips

The Korean firm is the largest TV and phone maker in the world, and it sells the most memory chips across the globe too. The company earns more revenue from semiconductors than all other vendors, which include Intel who used to lead the field in a long time. So when demand for chips and their prices go down, Samsung’s profit goes down too.

samsung-profit-drop-3
The company is struggling to get people to buy high-end phones

In addition, the company is struggling to attract consumers to buy its pricey phones, just like the fight Apple and other players are having. Phone makers are having difficulties in upgrading their phones and make their product stand out from one another. While the newest, greatest smartphones are priced higher, and people are holding on to their current phones for longer.

Xnxubd - Samsung has been relying on its more budget phones, the A-series in particular, to keep people buying. The Galaxy Fold doesn’t seem to have the ability to boost its profit at all.

>>> Samsung India Careers - An Ideal Workplace For Indian Engineers

>>> Xnxubd NVIDIA Graphics Card - The Most Suitable Options For Your Needs

>>> Xnxubd Nvidia To Collaborate For New 7nm GPU Technology

Tags

Comments

Sort by Newest | Popular

Next Story

Read more

Netflix Users Can Now See What’s Popular On The Platform

Features- Feb 27, 2020

Netflix Users Can Now See What’s Popular On The Platform

After testing a new “Top 10” feature in the UK and Mexico for the last six months and seeing great results, Netflix has made the feature available globally.

India’s Wearable Market Shipped 14.9 Million Units In 2019

Features- Feb 28, 2020

India’s Wearable Market Shipped 14.9 Million Units In 2019

In 2019, the Indian wearable market shipped 14.9 million units, witnessing an impressive 168.3 YoY (year-over-year) growth.

Apple Takes Down “Plague Inc” Virus-Themed Gaming App

Features- Feb 29, 2020

Apple Takes Down “Plague Inc” Virus-Themed Gaming App

“Plague Inc,” popular gaming allowing players to create a virus, then spread it around the world has been taken down from the Chinese Apple’s App Store.

How To Fix The Gmail Bug That Prevents You From Deleting Spams On Your Android Phone

How To- Feb 28, 2020

How To Fix The Gmail Bug That Prevents You From Deleting Spams On Your Android Phone

A bug in the Gmail Android app is making it harder for you to delete spam and trash mails, but there are several workarounds to overcome this problem.

Qualcomm Confirmed Unreleased Snapdragon 865-Powered Smartphones: Zenfone 7, Black Shark 3, OPPO Find X2, ...

Mobile- Feb 26, 2020

Qualcomm Confirmed Unreleased Snapdragon 865-Powered Smartphones: Zenfone 7, Black Shark 3, OPPO Find X2, ...

The Snapdragon 865-powered smartphones include much-anticipated names like Redmi K30 Pro, OPPO Find X2, ZenFone 7, and ROG Phone 3.

Samsung Galaxy S10 Lite 512GB Storage Variant Released; Sales Start Soon

Mobile- Feb 28, 2020

Samsung Galaxy S10 Lite 512GB Storage Variant Released; Sales Start Soon

Samsung India has just announced a new model of the Samsung Galaxy S10 Lite with 8GB of RAM and 512GB of storage for a slightly higher price than the 128GB model.