BAD NEWS FOR those of you with investments in Samsung. The world's biggest smartphone manufacturer has issued guidance for investors and said investors should brace for bad news.
True, complaining about profits of 6.5tn won (around £4.4bn) does feel a bit ‘my diamond shoes are too tight', but it does represent a drop of 56 per cent on profits from this time last year.
Total revenue also sounds impressively humungous: 56tn won (around £38nbn). But scratch the surface and again this doesn't look so hot. It's the lowest quarterly revenue since Q3 2016, and that quarter has a special significance for Samsung executives, given they were almost literally firefighting Galaxy Note 7 explosions.
Samsung doesn't offer much commentary on these numbers, other than to say that the figures above are the median figures on a range that go between 6.4 and 6.6 trillion won for profits, and 55 and 57 trillion won for revenue.
Analysts, however, love to speculate, and they generally seem to believe that Huawei's ongoing problems may be impacting Samsung's chip business. Of course, in the long run, a major rival having difficulties could be of assistance to Samsung, but that'll take a while to be felt.
While Samsung has previously stated it believes phone and chip sales will pick up in the second half of 2019, there's also reason for concern. Reuters reports that the dent in profits was softened by a one-off payment of 800bn won (around £545m) from Apple for a missed shipment target on high-end iPhones, which pack Samsung OLED screen tech.
That's obviously not something that can be counted on next time around, which should make Q3 sales all the more interesting. µ
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