Samsung did not have a very profitable last quarter. Not that, that is surprising. Its projected guidance for Q4 2018 wasn’t very encouraging either. On expected lines, Samsung Electronics’ operating profit is down 29 per cent year on year, and revenue has dropped 10 per cent from a year earlier. Samsung says, in its earnings report, that falling demand for memory chips – which has always been its biggest profit driver -- is responsible for depleting profits. Slowing smartphone shipments are also to blame, which is an indirect way of saying, the Galaxy S9 and Galaxy Note 9 have not been doing very well.
“The company posted KRW 59.27 trillion in consolidated quarterly revenue, down 10 percent from a year earlier, and KRW 10.8 trillion in quarterly operating profit, down 29 percent. For 2018, Samsung reported KRW 243.77 trillion in revenue and KRW 58.89 trillion in operating profit,” Samsung Electronics said in a press statement.
Samsung “doesn’t expect demand for memory to pick up this quarter, either," but is optimistic about the upcoming flagship Galaxy S10 – the name is confirmed by Samsung in its earnings report – to “prop up sales and business performance in the coming months.” Samsung has also confirmed that it will be “launching foldable and 5G devices in efforts to ensure sustainable growth.”
Clearly, a lot will be riding on the Galaxy S10 which is set to have multiple variants, possibly to cater to different target audiences. The company is expected to launch premium Galaxy S10 and Galaxy S10+ models for those looking to buy a high-end phone, and a more affordable but feature rich Galaxy S10 Lite which will supposedly bring more or less the same experience at more mainstream prices. Similar to how Apple has positioned the iPhone XS, iPhone XS Max and iPhone XR.
Samsung will launch its 10th anniversary flagship Galaxy S10 phones on February 20 ahead of MWC 2019. Samsung is hosting its annual Unpacked event in San Francisco on February 20 where it will take the wraps off its Galaxy S10 phones for the global markets. Samsung is also expected to show off its foldable phone during the Galaxy S10 launch event.