Samsung Electronics' net profit down 0.09% in Q2


"Second quarter revenue fell due to softer sales of smartphones and display panels, despite robust demand for memory chips", the company said in a statement.

"Operating profit in the semiconductor sector is likely to hit the largest-ever 13.7 trillion won in the next quarter, due to the high DRAM chip prices and increasing shipments of NAND flash memory products", said Park Yoo-ak, an analyst with Kiwoom Securities.

Samsung is pushing to launch Galaxy Note earlier this year, since they've already confirmed the launch event which will take place August 9.

If Samsung didn't have its burgeoning chip business to boost up profits, the results could have been worse. However, the company reckons demand for its flexible OLED technology will improve in the second half of this year.

With the chip business accounting for a whopping 78.1 percent of the combined operating profit in the second quarter, however, industry watchers said Samsung should do more to ease such a heavy dependency.

On the other hand, Samsung's handset business reported a big fall in quarterly profit from a year ago.

In the second half of 2018, Samsung expects demand to grow for its flexible OLED panels and continued strong demand for its memory products.

More news: Donald Trump set for tense trade talks with EU's Jean-Claude Juncker

Will Samsung be able to generate a higher operating profit compared to this figure with the release of the Galaxy S10 and Galaxy S10 Plus?

This is the first time Samsung DeX - which allows the Galaxy S8, Galaxy S9, and Galaxy Note 8 smartphones to be connected to a keyboard, monitor, and mouse to become a "desktop" - is available on a tablet.

Higher marketing expenses and disappointing sales of the S9, which fell short of its target, weighed on its mobile performance, Samsung said.

Just like their presence in the smartphone market, Samsung wants to dominate the tablet market as well. The competition is now having effect on the Samsung's earnings of Q2 2018.

Samsung has been developing several phones for its consumers and it seems it has spread itself too thin doing so.

Also, this news doesn't come free of implication: lunch dates from United States and European countries are usually closed to the date in which Samsung launches the new Galaxy Note in South Korea.

The Galaxy Note 8 was showcased on August 23 previous year and went on sale on September 21. Not much is known about any of these phones except for Samsung's Galaxy F, which has been featured in rumors and reports for more than two years. In addition a sooner-than-expected launch date for its next generation Galaxy Note model, Samsung will work towards more competitive pricing and quicker adoption of future technology overall, throughout all of its lines of product. But it expected challenges in the mobile business going forward.