HomeNewsSamsung's Q2 2019 earnings likely dipped by 56% compared to last year

Samsung’s Q2 2019 earnings likely dipped by 56% compared to last year

This would be Samsung's lowest profit since Q3 2016.

Samsung Electronics has launched a number of impressive smartphones this year. The company’s current flagship devices – Samsung Galaxy S10, Galaxy S10+ and Galaxy S10e – have been appreciated by critics and fans alike for the kind of capabilities they offer. In addition to this, the company has also revamped its budget and mid-range line-up in India with its Galaxy M and Galaxy A series. Ideally, the South Korean technology giant should be having a great year in terms of earnings too. But then, Samsung’s Q2 2019 earnings forecast doesn’t really show this.

The company has said that its Q2 2019 profit is likely to be halved as compared to last year. According to the earnings guidance that has been released by Samsung, it is expected to fall by around 56% to 6.5 trillion won ($5.56 billion). The revenue of the company is also expected to slide by 4% to 56 trillion won ($47.89 billion).

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We should mention that this would be Samsung’s lowest profit since Q3 2016. But then, back then the South Korean technology giant was facing the Galaxy Note 7 debacle. While Samsung has not given any explanations in its earnings guidelines, analysts have suggested that Huawei facing some very major problems with the US right now could have impacted the company’s chip business. But then, it may also have helped Samsung’s smartphone sales in some markets.

But then, things are not as bad for Samsung as they could have been. The company has gained from its display division and that definitely would have given a boost to its profit. According to a report in Reuters that quotes analysts, Samsung has been reimbursed with 800 billion won ($684 million) by Cupertino-based technology giant Apple. The company uses Samsung’s OLED displays in its iPhones and had to reimburse the South Korean company because it missed the sales target that had been agreed upon prior to the deal.

A recent report has also suggested that more devices by Apple will now come with OLED displays because the company is planning to take this step in order to satisfy a penalty that it owes to Samsung Display. So very soon, Samsung’s OLED displays may make their way to Apple’s tablets and laptops.

Apple had used Samsung’s OLED displays in iPhone XS and iPhone XS Max. However, the sales of both these smartphones did not really do wonders this year. So using OLED screens in other devices would make perfect sense for Apple in order to fulfil the contract.

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