Samsung Reports Losses in Display Panel and Smartphone Business

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Samsung’s mobile division, as per the company, will now focus of flagship devices such as the 5G smartphone. It’s TV division is expecting strong sales from premium TVs

pic credits – Samsung

Samsung Electronics posted KRW 52.4 trillion (US $ 45,02,44,38,000) in consolidated quarterly revenue and KRW 6.2 trillion (US $5,32,73,19,000) in quarterly operating profit (Q1 2019). The company says that its first quarter earnings were weighed down by the weakness in memory chips and displays, although the newly launched Galaxy S10 smartphone logged solid sales.

The Display Panel Business, as per Samsung reported a quarterly loss due to decreased demand for flexible displays and increasing market supplies for large displays. It is to be noted here that display panel business is closely related to TV business.

Word from research companies

Interestingly, a recent report by Counterpoint Research had suggested that Xiaomi, once again, had emerged as the smartphone brand with most number of shipments during the Q1 2019. Another report by Canalys Reserach had said that Samsung was able to ship more than seven million devices during Q1 2019. Xiaomi on the other hand, shipped more than nine million devices during the same time period.

BBK, a China-based company that owns Realme, Oppo, Vivo, Oneplus, Reno and Iqoo, has technically surpassed Samsung in terms of smartphone shipments during Q1 2019. As opposed to Samsung’s 7.3 million shipped devices, BBK (Realme+Vivo+Oppo) shipped more than eight million devices during the quarter.

Rushabh Doshi, research director at Canalys, said, “Vivo’s expensive bets on the Indian Premier League (IPL) cricket are paying off. Vivo has made several shrewd marketing investments, which also include signing internationally popular Bollywood actor Aamir
Khan as its brand ambassador. But it faces an intense battle in 2019, as Oppo’s Cricket World Cup sponsorship and Samsung’s fresh offensive with the new M series threaten to stifle momentum.”

It might not be wrong here to say that Samsung will have to quickly adapt to the evolving market and address it with products that consumers find at par with offerings from the likes of Xiaomi and Realme. Moreover, Samsung has had a bad time as it had to postpone Samsung Galaxy Fold Device launch in all the countries. There were reports of Samsung’s first foldable phone breaking from several reviewers around the globe.

Display Panel business

The number of companies offering TVs are on a rise globally. India alone has seen a flurry of new companies entering the smart TV segment. The likes of Mi, Vu, Thomson and Kodak are some brilliant examples. Though a lot of these may be buying TV panels from Samsung, there are others who are selling TVs fitted with display panels from other manufacturers as well.

TCL, another China-based consumer electronics company has also announced its new line-up for India. It is to be noted here that TCL counts itself as the second TV brand in the world.

Samsung said that growing competition in the mature TV and smartphone markets is expected to pose a challenge in the second half, and it will focus on strengthening its leadership in the premium segment. Company’s CE Division, as per Samsung, is likely to report growth in the second quarter on strong seasonal demand for air conditioners and sales of new premium TVs. For the mobile division Samsung is set to focus on flagship products such as the world’s first 5G smartphone and the enhanced mass-market lineup with innovative cameras and display features.

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