Despite the fact that Samsung’s first-quarter earnings exceed industry expectations, the company has warned that it could face tough times in the coming months due to a slowdown in the mobile market. The company also reported that there had been a slowdown in demand for its S9 and S9 Plus smartphone models.
On Wednesday, the company posted a 20 percent increase in revenue and an increase of 58 percent in its operating profits. The company majorly benefited from the sale of its memory chips as the demand tremendously increased.
Samsung chips are purchased by numerous companies around the world since it’s the best suitable chip for servers and smartphones. However, the South Korean electronics giant has cautioned that its second-quarter profits from the mobile division will decline as a result of weak sales of its leading smartphone models. The company also warned that its display business would also suffer as a result of inadequate smartphone demand.
Furthermore, to enhance sales of its S9 and S9 Plus smartphones, the company aims to launch more experiential stores and work in close coordination with its partners. The company also said that it plans to continue promotional programs including exchanges.
The company is also expected to launch the Note 9 later this year. Samsung has also said that it will invest more in Bixby Voice assist and give customers a seamless experience.
The smartphone market has slowed down in recent quarters. It is becoming increasingly difficult for smartphone makers to differentiate their devices from their competitors.
The smartphone sales had declined during the fourth quarter of last year. As a result of falling demand for smartphones, both Apple and Samsung have reported weak earnings. Apple has also confirmed that the need for its latest iPhone X is weak.
The South Korean company is best known for its Television sets and Phones. A limited number of people understand that this company also sells the most memory chips in the world. Last year, Samsung officially became the most significant semiconductor manufacturer in the world.