Samsung finds itself in a complicated situation, although it is still the main actor of a multi-million dollar market. Three months ago its revenues had fallen by 28% between the last quarter of 2017 and the same quarter of 2018.
Today the firm has made public its results for the first quarter of 2019 and it seems that they continue in the same line, with a strong decrease if we compare them with those of a year ago.
In the first quarter of 2019 Samsung has announced that its profits have reached between 6.1 and 6.3 billion Korean won, about 5500 million dollars. This figure, which is exceptionally high, is down 60.2% compared to the same figures for the first quarter of 2018 (15.64 trillion won).
If you look at the revenues, you see that they are down as well, although not so much. It went from 60.56 trillion won in the first quarter of 2018 to 52 trillion won this quarter, down about 14%. Still, it’s a little less than analysts thought.
Samsung has taken advantage of the explanation of its results to point out that Apple’s demand for OLED screens has been lower than expected, implying that they believed more iPhone would be sold.
In addition, the price of memories, one of the firm’s most important businesses, continues to fall, affecting its profit margin which, as we have seen, has suffered much more than gross revenue.
For now we do not have a breakdown of which divisions have managed to better withstand the blow, if the fall in smartphone sales has recovered. We may still see some bad quarters in Samsung, at least comparatively, until their new strategy with Galaxy S, Galaxy M and Galaxy A begins to take effect.