Samsung profit collapsed: Company preparing to announce the worst second quarter in the last three years

Samsung profit collapsed: Company preparing to announce the worst second quarter in the last three years

Samsung profit collapsed: Company preparing to announce the worst second quarter in the last three years

Samsung’s South Korean earnings report is due on Friday. Analysts expect Samsung’s profits to fall by more than half as the semiconductor business is in decline. The Huawei trade ban, which led to the suspension of certain shipments, exacerbates the situation.

Refinitiv SmartEstimate predicts that the company’s operating profit will be 5.14 billion dollars (according to 29 analysts). This is a decrease of 60% compared with last year and a drop compared with the poor performance of the first quarter, when operating profit amounted to 5.4 billion dollars. This will make the profit for the second quarter the lowest in the last three years.

Samsung is the largest supplier of DRAM and NAND microcircuits in the world. For the company it is the most profitable business, which bring about two thirds of the profits. The situation with Huawei is complemented by low prices (a 25% decline in the second quarter, according to TrendForce), which also damage the company’s profits. Analysts believe that prices will remain low until the end of the year, while Samsung and Micron say they will start rising again.

If the ban with Huawei is not lifted, then Samsung can sell 37 million more smartphones a year, analysts say.

About Joseph Vinton 44 Articles
Joseph is a journalist, SEO expert and content strategy consultant who prefers to roam the internet all day for the latest news and discussions in the field of tech, pop culture and media. He is also a freelance internet strategist and consultant, fascinated by online media and publishing.

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