Samsung Profit Misses Estimates as Growth Stalls in Smartphones

Samsung’s net income fell short of analysts’ estimates as slowing growth in the global smartphone market hits demand for its Galaxy devices, while Chinese rivals ramp up competition to supply displays, according to Bloomberg.

Net income rose to 11 trillion won ($9.8 billion) in the three months ended June, the Suwon, South Korea-based company said in a filing. That compares with the 11.6 trillion won average of estimates. Operating profit was 14.9 trillion won on sales of 58.5 trillion won, the company said, confirming preliminary numbers released earlier this month.

With growing competition from China, Samsung’s smartphone division posted 2.7 trillion won in operating profit, down from 4.1 trillion won a year earlier. After a decade of growth, the global phone market is slowing as consumers wait for the next level of innovation such as bendable-screen phones and devices for 5G networks.

Operating income from the chip unit amounted to 11.6 trillion won, accounting for the lion’s share of profit. Samsung’s operating profit from its display business was 140 billion won, down from 1.7 trillion won a year earlier. Samsung’s consumer electronics unit, which includes TVs and appliances, had profit of 510 billion won.