Samsung announced last night that it still hasn't managed to solve the very big problems it is going through at the moment, despite the fact that it is working very intensively to find the right solutions. Those from Samsung announced that the receipts for Q4 2019 reached 50.7 billion dollars, up 1% compared to the same period last year, so practically nothing has changed substantially, which is somewhat good news in the end.
However, Samsung announced that its profit decreased by 34% compared to Q4 2018, reaching 6 billion dollars, and here is its big problem, even if the receipts remain quite stable, the profit matters the most. The biggest problems come for Samsung due to the continuous drop in prices for memory chips, this market being in a constant decline for over 1 year and a half, and those from Samsung were heavily affected.
Samsung: DISASTER Continues, the Announcement that SHOCKED the WHOLE World
Samsung still enjoyed better sales of mobile phones in Q4 2019, but also an increase in profit generated by the sale of phones from the Samsung GALAXY A series, which helped that the profit was not even lower. Samsung is hoping that in 2020 people will want to buy more 5G phones, which should generate growth including for the division that comes with memory chips, because it should increase the demand for them.
"Samsung Electronics has just published its fourth quarter financial results. Revenue was more or less flat year-on-year — down 1 percent to 59,9 trillion won ($50,7 billion) — while operating profit fell 34 percent to 7,1 trillion earned ($6 billion). The main reason for the decline remains falling prices for memory chips, Samsung's biggest profit driver in recent years. The display panel business also saw declining profits year-on-year due to weak demand.”
Samsung also hopes that OLED screens will be sold in larger quantities, mainly to those from Apple, and that memory modules will also be sold in larger quantities. If these things happened, then it is expected that in the same period of next year, Samsung will come with much better news regarding the situation in which it is, and this would be an extraordinary thing.
Samsung has a situation exactly opposite to that of Apple, the Americans generating revenues of 91 billion dollars in Q4 2019, almost double, the profit reaching 22 billion dollars, almost 3.5 times higher.
