Samsung Electronics expects operating profit in the second quarter to be more than halved from the previous year, and the drop of about 56 percent to 6.5 trillion (5.56 billion), according to earnings guidance issued by the company today. Revenue is projected to push about 4 percent to 56 trillion won ($ 47.89 billion).
This would be Samsung's lowest profit since Q3 2016, when the company was hit by the Galaxy Note 7 debacle. Samsung does not give full explanation along with the earnings guide, but analysts suggest that Huawei crashes could have had a significant impact on Samsung's critical chip business. On the other hand, it is also likely that Samsung's smart phone sales can be used in some markets.
It could be even worse for Samsung in the quarter, that it had not been an advantage in a display department that increased profits. According to analysts who spoke to Reuters, Samsung was reimbursed about $ 800 billion ($ 684 million) by Apple, because the US company, which uses Samsung's OLED monitors in its iPhones, missed an agreed sales target.