Due to the Huawei blockade, Samsung is preparing for a 56% drop in operating profit. Domino effect. The South Korean manufacturer is hit hard by the trade war between the United States and China and expects a fall in operating income on Q2 2019
Samsung Electronics is preparing for a 56% drop in operating income in the second quarter of 2019. The South Korean manufacturer, the world's largest semiconductor is hit hard by the volatility of the economy. Operating income is expected to reach 6.5 trillion won, or 4.9 billion euros, compared with 14.87 trillion won in the second quarter of 2018, the company said. The final figures will be released on July 31 but Samsung expects a decline of 4.2% of its turnover to the overall.
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| Samsung is preparing for a 56% drop in operating profit |
Samsung Electronics is preparing for a 56% drop in operating income in the second quarter of 2019. The South Korean manufacturer, the world's largest semiconductor is hit hard by the volatility of the economy. Operating income is expected to reach 6.5 trillion won, or 4.9 billion euros, compared with 14.87 trillion won in the second quarter of 2018, the company said. The final figures will be released on July 31 but Samsung expects a decline of 4.2% of its turnover to the overall.
The blockade put in place by the US administration against Huawei would be the main cause of this fall in operating profit. The world's second-largest smartphone manufacturer, Huawei is also Samsung's biggest customer on its component business. Broadcom's semiconductor business, also banned from trading with Huawei following the " Trump Decree ", should also be impacted, warns the eco-newspaper The Street.
Samsung can at least be satisfied with the success of its latest high-end smartphone. Marketed for three months, the Galaxy S10 range would sell well . The sales volume would be 12% larger than that of the Galaxy S9 and S9 Plus, over the same period, said Counterpoint Research. It remains to be seen if the trend is the same for other devices and in particular the Galaxy A series that has to face the many Chinese manufacturers.
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