Samsung posts slowest profit growth despite stellar chip sales

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The Samsung Galaxy Tab S4 is priced at $650 for the 64GB variant and $750 for 256GB.

Samsung said the system LSI and foundry businesses would benefit from higher demand for mobile Aps and image sensors, noting that flexible OLED shipments would rise despite the intensifying competition. Revenue for the second quarter tallied 58.48 trillion won, down 4.1 percent on year and 3.4 percent on quarter.

Samsung's IM division, which used to account for the majority of the vendor's overall operating profits, posted operating profits of KRW2.67 trillion on revenues of KRW24.0 trillion in the second quarter of 2018. The OLED demand is expected to pick up in the second half of 2018, particularly if Apple launches new models.

The South Korean tech giant said that its April-June net income stood at 10.98 trillion won ($9.8 billion), up 2 per cent from 10.80 trillion won a year earlier. Now, Samsung has also given a price cut to the popular Galaxy J6 smartphone for the second time.

As the demand growth is forecast to remain strong in the second half, Samsung predicts the bit growth rates of the memory chips to hover around the middle of the 10 percent range.

Competition would heat up in the coming months as new smartphone models were released, it added.

Amid the stagnant high-end smartphone market, Samsung reported a drop in earnings, both year-on-year and quarter-on-quarter, over slow sales of the Galaxy S9 and S9+ premium smartphones.

In terms of specs, the Galaxy Tab S4 runs Android 8.1 and features a 10.5-inch Super AMOLED display, 13MP and 8MP cameras, a Qualcomm Snapdragon 835 octa-core processor, and a 7,300mAh battery that Samsung says offers up to 16 hours of video playback.

The company said it also plans to expand the scope of services powered by artificial-intelligence technology, and seek to improve connectivity with voice-recognition system Bixby and mobile payment tool Samsung Pay. The company said it plans to showcase various QLED models to meet with the high seasonal demand expected for later this year.

Looking to the second half, the TV market is projected to grow YoY, especially in developed economies.

The disappointment was greater in Samsung's information technology and communications business, which includes its smartphones. Not much is known about any of these phones except for Samsung's Galaxy F, which has been featured in rumors and reports for more than two years.

Samsung shares slid 0.3 per cent by 0620 GMT, compared with the flat broader market.