Samsung posted a 60% drop in first-quarter operating profit on Tuesday, driven by lower chip prices and slower demand for screens.
The company said in a statement: Operating profit was about 5.4 billion US dollars in the first three months of this year, in line with the estimates of 5.4 billion dollars, announced earlier this April. Revenues, which fell by 13.5% or $ 45 billion, were close to company estimates.
Samsung's core semiconductor segment posted a 64% drop in operating profit to $ 3.524 billion, while the screen sector posted a loss of $ 481 million.
The world's largest maker of smartphones said its mobile phone business posted a 40 percent drop in operating profit to $ 1.97 billion.
Samsung hopes that its new smartphones, especially the Galaxy Fold, can revive growth in the mobile segment. But it seems that it will not go as the company hopes, especially after announcing the postponement of the launch of the folding phone, after the discovery of many problems on the screen.
The company said its smart phone shipments had been hampered by the reorganization of its medium and low-end phones. Phone revenues fell 4% year-on-year to $ 23.4 billion.
Samsung said in a statement: "Even with the strong sales of the Galaxy S10, the profitability of the mobile phone has decreased [compared to last year], as competition intensified in the category of low-end phones and medium specifications."
Samsung did not disclose the sales figures of the Galaxy S10, but its strong sales come in light of the slowdown in the smartphone market in general, as it is difficult for phone manufacturers to make radical changes in the devices make them distinct from others.
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