Samsung’s run of record profits fizzles out

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Samsung unveils the Galaxy S9

Samsung’s year-long streak of file quarterly earnings has come to an finish.

The world’s largest smartphone maker stated Friday that working revenue for the quarter resulted in June is predicted to come back in at 14.eight trillion received ($13.2 billion), down from the earlier quarter’s 15.6 trillion received ($14 billion).

For 4 quarters in a row, Samsung had posted ever increased earnings.

Its forecast for the second quarter continues to be a rise of 5% from the identical interval a yr earlier, nevertheless it fell in need of analysts’ expectations.

Shares in Samsung Electronics (SSNLF) dropped about 2% in Friday afternoon buying and selling in Seoul.

Associated: Chinese language smartphone gross sales endure largest decline ever

Samsung’s earnings are affected by disappointing telephone gross sales and slowing demand for some reminiscence chips, in line with analysts.

The corporate did not get away the performances of its completely different companies in its forecast Friday. It’s going to report full outcomes on the finish of this month.

Customers’ reluctance to spend some huge cash to improve their telephones has affected gross sales of Samsung’s new flagship machine, the Galaxy S9. Market analysis agency Counterpoint Analysis expects Samsung will battle to promote 40 million Galaxy S9 telephones this yr. That is a steep decline from the file 50 million Galaxy S7 telephones Samsung bought two years in the past.

Associated: Samsung is flying excessive. Here is what might convey it all the way down to earth

Samsung reaped the advantages of sturdy demand for chips utilized in digital units lately, however now it is affected by weak demand and a pointy worth drop for some reminiscence chips.

Some analysts predict Samsung’s earnings will bounce again within the second half of the yr.

“Regardless of issues on smartphones, we anticipate earnings for its cell enterprise to recuperate … due to new mannequin launches,” analysts from Daiwa Capital Markets wrote in a notice to purchasers final week.

CNNMoney (Hong Kong) First revealed July 6, 2018: 2:43 AM ET

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