Samsung Electronics has just disclosed its earnings for Q1 2019 and the results are unexpected to say the least. The Korean tech giant has been making subtle efforts to retain the top spot in global rankings and has managed to stay on top for quite some time. Despite hardened competiton from Chinese manufacturers, Samsung has improvised its products and delivered amazingly.
The Q1 2019 sales report is live and it shows the sales conducted throughout the first three months of the year along with the operating profits which were obtained from those sales. The statistics show that Samsung earned a consistent 52 trillion KRW equivalent to around 45.7 billion USD. While the operation profits were calculated at 6.2 trillion KRW or roughly 5.4 billion USD.
Compare that with previous sales and questions start to rise as to what the manufacturer been up to lately. The release of new Samsung products ensured the security of the revenue generated yet the numbers have been going downhill ever since. As for the mobile division, the Galaxy S10 could not save the company from declining and the stats, when compared to Q4 2018 results, paint an obsolete picture. Samsung in Q4 2018 earned roughly 59.27 trillion in sales with operating profits of around 10.80 trillion. Compare this with this year’s results and we start to see a heavy decline in sales and profits altogether.
Now, many would argue the fact that having the end of the year is compared to the start of a new year isn’t really an eye for an eye but the struggle is clear when Q1 2018 sales outdo this year’s sales. 2018 was considered to be a year for Chinese brands and young companies and proved fatal for Samsung. With the revelation of newer, updated and more innovative products enthusiasts had hopes that the company would stand back up and come in stronger than ever. As a matter of fact, Q1 2018 showed 60.56 trillion KRW in sales with operating profits of 15.64 trillion KRW. That is roughly a 14% decline over the course of the year in sales and a 60% decline in operating profits.
Considering the fact that Samsung heavily relies on hardware manufacturing and sales, prices for basic hardware parts have gone down ever since. For Samsung to regain ground, it must bring something new to the table. Something new to offer, with more innovation than ever.
