July 31, 2019 | Investopaper
South Korean tech giant Samsung has reported a fall in its profit for the second quarter ending June 2019. The operating profit of the company fell by 56 percent in the second quarter compared to last year quarterly figures. The main reason for the decline is due to falling memory chip prices.
As of now, Samsung is the world’s largest smartphone maker whose mobile business has also declined by around 42% from a year ago. The smartphone maker said it expects overall mobile demand to remain weak in the second half. The company said it is due to “growing uncertainties over the global economy and trade.”
The operating profit for the quarter was reported to be around $5.6 billion which is 55.61 percent less than last year’s figure for the same period. The sales done by the company generated the revenue of 56.13 trillion won until this period. Still, the figures that the company released were better than the guidance provided by the company earlier this month. Similarly, the company reported a 60 percent decline in its operating profit in the first quarter of 2019.
After the company released the report, the shares of Samsung declined by 2.58 percent in the morning trade session. Taking an optimistic outlook, Samsung said, “demand is expected to grow although the Company sees volatility in the overall industry due to increased external uncertainties.”