KOREAN PHONE MAKER Samsung saw its record profit streak come to an end in the second quarter due to "sluggish" sales of the Galaxy S9.
The company announced on Tuesday that it made an operating profit of 14.87 trillion won (£10.1bn) on sales of 58.4 trillion won (£38.8bn) during the three month period, a rise of 5.2 per cent and a drop of 4 per cent, respectively, compared to the year-ago quarter.
Samsung has blamed this slump on "softer sales of smartphones", noting that the performance of its Galaxy S9 flagship has been "slow" since it went on sale earlier this year. According to recent reports, the handset has suffered the lowest sales of any flagship Samsung smartphone since 2012's Galaxy S3, with expected shipments of 31 million units this year.
Despite the imminent launch of the Galaxy Note 9, Samsung says the mobile market will "remain challenging" in the second half of 2018, likely due to increased competition from Chinese firm's Huawei and Xiaomi.
Samsung's display business also struggled during Q2, with the firm admitting that it saw "weak demand" for flexible OLED panels, such as that found on the iPhone X, along with falling prices for LCD panels.
The firm expects this division to bounce back during the next quarter though, noting that "growing demand for flexible OLED panels" will drive earnings higher in the second half. This is likely a nod to Apple's incoming OLED 2018 iPhones and could be a sign that Samsung's 'unbreakable' OLED panel might show up sooner than expected.
It's not all doom and gloom for Samsung, though, as the firm's semiconductor business posted its highest-ever operating profit driven by 'demand for DRAM chips used in data centres and NAND flash memory for high-capacity storage."
The company said it anticipated strong demand for chips during the second half of the year thanks to demand from high-density data centres. µ
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