Samsung and a few other big companies unveiled their revenues and incomes for Q4 2018 over the past 24 hours. Samsung’s results are far from impressive, but we also get some positive predictions for the rest of 2019.
Meanwhile Samsung’s operating profit is down 29% compared to Q4 2017. The declining demand for memory, display and mobile products is to blame for the drop. The company has warned investors about the annual earnings decline in 2019. It’ll try to stave that off via the foldable devices and also the 5G phones. Samsung’s IT & Mobile Communications Division posted $20.9 billion in consolidated revenue for Q4 2018, with a mere $1.3 billion in operating profit.
This is a decline in both revenue and profit compared to Q4 2017. The operating profit is also down compared to Q3 2018, which is weird for Q4, that traditionally includes Thanksgiving, Christmas and big shopping periods. Samsung has already started taking action, with the Galaxy M series launched this week, plus the Galaxy S10 series on February 20, foldables and more.
5G is also going to be a big deal in the second part of the year. Smartphone shipments will probably remain at a level similar to Q3 2018, according to predictions. The problem with 5G and foldable machines is that they’re going to be pricey, so the sales will be limited, probably devices will be limited in production too. Another way to expand is to bring Bixby to other devices, connected ones.
The chip and memory segment are doing fine, semiconductors are booming though.