Samsung is indeed a smartphone giant, but the primary income source is not the smartphone but the memory chips and the display division. Recently, Samsung expected the fall in their operating revenue, and as per official quarterly reports, the same has happened. As per the shared reports, the operating profits of the company are down by almost $9.7 billion, which is nearly 29% decrease Year on Year. The operating revenue is down to $53.3 billion from what it had last year.
Samsung claimed that the decreased demand in the memory chips segment had affected their operating revenue. The trade war between China and the US and also the cheap memory chips manufacturers have changed the demand of costly Samsung chips from the smartphone manufacturers. The company is not expecting the unexpected growth in the Memory chips sales anytime soon, but the surge in smartphone sales might help them regain the operating profit levels.
As the setback in operating profits and revenue is for the single quarter only, the company is expected to post a record-breaking profit and revenue number in the entire financial year. The company is innovating a lot in the smartphone and memory chips segment to improve their sales figures and stand out from the flock of competitors. The upcoming Samsung Galaxy S10 smartphone series is what expected to bring the projected sales figures. Also, the company is working on the mass production of new memory chips, that have the storage capacity of 1TB. By providing the out of the box products that will help the smartphone manufacturers stand out from the competition, will help the company is posting good sales numbers. Not just these, but Samsung is working on foldable smartphones, and the 5G enabled devices which are expected to be revealed by the company in the coming months.