Home Business Samsung Said Its Second Quarter Earnings Fell By 57%

Samsung Said Its Second Quarter Earnings Fell By 57%

Samsung Said Its Second Quarter Earnings Fell By 57%

Smartphone making companies are going through some rough period because their earning report shows their dire situation. Recently South Korean smartphone making company Samsung released its statement, which reveals the company managed to make approximately half of what they earned as compared to last year. Samsung Electronics on Friday release its second-quarter earnings report, and it has brought a good plus bad news for its investors. Before this earning report published, many experts predicted that Samsung might be going to earn 6 trillion Korean won, but the company managed to make more than 6.5 million Korean won.

One of the largest sources of revenue of Samsung is memory chips because the company does not only rely on the selling of smartphones. Samsung is one of the leading suppliers of memory chips in the industry, and they are doing B2B business for a long time. Samsung has beaten earnings expectations of experts for this current year, but as compared to last year’s performance they have managed to earn approximately half of it.

Experts have said that the current situation of memory chips industry is not stable because many large companies are going through a transition of new inventions. Many projects are undergoing in this industry, which might change it for a good cause. DRAM and NVRAM are those chips which are in high demand but because of a shortage of supply they are not getting produced by companies in larger quantity. However, experts predicted that the sector might get on track by the end of next year. Japan-Korean trade tension is also affecting the market supply of memory chips. Many companies are dependent on both countries supply of materials for making smartphones and memory chips. Even though this situation is not permanent experts predict that Samsung might perform better in upcoming quarters.