According to foreign media reports, Samsung Electronics released its second-quarter earnings report on June 30, 2018. The financial report shows that Samsung’s second-quarter operating profit reached 14.9 trillion won ($13.4 billion), a year-on-year increase. 5.7%, the reason behind this is strong chip sales; revenue was 58.48 trillion won (about 52.3 billion US dollars), down 4.13% year-on-year.
In early July, Samsung Electronics released preliminary data for its second-quarter earnings report, which was said to be driven by semiconductor business and S8 smartphones. Samsung Electronics expects revenue of 58 trillion won ($51.8 billion) in the quarter. Nearly 4.9%, Samsung Electronics' revenue in the second quarter of last year was 61 trillion won. In terms of operating profit, Samsung Electronics expects operating profit in the second quarter to be 14.8 trillion won ($13.2 billion), up 5.2% year-on-year. In the second quarter of last year, its operating profit was 14.07 trillion won.
Analysts said that although the chip business will be profitable for the seventh consecutive quarter, smartphone revenue growth is sluggish, which is worrying that its mobile sector has nothing to do with boosting Galaxy mobile phone sales.
Lee Won-sik, an analyst at Xinrong Securities, said, 'The situation will be severe. The smartphone market is no longer growing, and competition is growing.'
HI Investment & Securities analyst Song Myung-sup said, 'Overall, the third quarter profit will be stronger than the second quarter, because Samsung's performance in the semiconductor and display business will improve.'
The semiconductor business is one of the most important assets of Samsung Electronics. Samsung manufactures various processors for companies such as Apple and Qualcomm. In addition, it is also the world's largest memory, flash memory chip manufacturer, memory chip prices, and Samsung Semiconductor business. Industry status climbed. Not long ago, industry analysts predicted that in 2017, Samsung Electronics' semiconductor revenue will surpass Intel and become the world's number one chip industry.
However, the high cost of chips has affected some electronics manufacturers, and Chinese manufacturers have been hit hard because their profit margins are lower than those of other peers. Analysts warned that China’s price manipulation survey of chipmakers such as Samsung may hurt DRAM pricing prospects. Because China is the largest importer of memory chips.