Samsung had an extremely difficult 2019, with problems that worsened from one fiscal quarter to another, and for the last one things were absolutely not better, the company announcing that the situation is very bad. Samsung announced that its profit for Q4 2019 registered a new decrease, just like in other previous fiscal quarters, only this time it is about 34%, slightly lower than the others.
Samsung announces that for Q4 2019 it would have recorded a profit of 6.1 billion dollars from all its divisions, a significant decrease compared to the 9.2 billion dollars recorded in the same period last year. Practically 3.1 billion dollars disappeared from the profit recorded by the Samsung company in Q4 2019, and the amount itself is huge, and suggests the fact that neither the sales of phones nor those of chips went very well in the last three months .
Samsung announces the WORSENING of the PROBLEMS it faced in 2019
Samsung had in Q4 2018 75% of the profit generated from the sales of chips for electronic devices, so the decrease is quite clearly generated by problems with the sales of this division within the company. Even the sales of screens, large and small, did not go too well for those from Samsung in Q4 2019, the company registering both fewer orders and lower prices for the units that were delivered to customers.
"Samsung Electronics Co. expects a 34% drop in its fourth-quarter 2019 operating profit, hurt by a continued global decline in semiconductor sales, which have recently clouded the company's earnings performance. The world's largest maker of smartphones and memory chips said it expected an operating profit of 7,1 trillion South Korean won ($6,1 billion) for the final three months of 2019, down from of 10,8 trillion won a year earlier. The company expects revenue to remain roughly flat from a year ago at 59 trillion won.”
Samsung surprisingly had good sales for premium phones in Q4 2019, but sales of the cheap ones dropped substantially, and although it surpassed its competition in sales, the profit was not brilliant. Samsung sold over 300 million phones in 2019, the vast majority being cheap and mid-range, only 6.7 million of them with 5G, which shows how the Korean company's sales are distributed.
Samsung had a very bad 2019, but everyone expects 2020 to be a much better year, with big increases in sales of chips, monitors, but even mobile phones.
