Samsung's Q2 2018 earnings confirm slow sales of the Galaxy S9

Samsung just released its earnings report (opens in new tab) for the second quarter of the year, and in regards to its mobile sales, things are less than ideal.

Although no exact numbers were given, Samsung says that its IT & Mobile Communications division saw a drop in sales for both year-to-year and quarter-on-quarter performance due to the Galaxy S9 seeing "slow sales." Despite that, the company's network business "achieved solid growth" thanks to Samsung's investments in LTE technologies.

Looking ahead, things might remain bleak for Samsung phones for a while. Per Samsung's report:

The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches.

To help combat this, Samsung still has faith in the upcoming Galaxy Note 9 and other mid-to-low-range handsets that'll be released this year.

As for overall sales, Q2 2018 (which ended on June 30) saw total quarterly revenue of KRW 58.48 trillion which is 4% less than what was reported in Q2 2017. On the flip side, quarterly operating profit saw a 6% increase at KRW 14.87 trillion.

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Joe Maring

Joe Maring was a Senior Editor for Android Central between 2017 and 2021. You can reach him on Twitter at @JoeMaring1.

  • Maybe stop charging laptop prices for phones that don't get long-term support? I can no longer justify spending north of $700 on tech I might be forced to replace in two years.
  • There's no way I was buying an S9 knowing that the Note 9, S10 and Galaxy X loomed in the near future. Especially for the price they were charging. Alot of folks waited, making the S9 the most expendable flagship they've ever released.
  • They will sell even less note 9’s,
    They should concentrate on innovating, not silly commercials that obviously don’t work,
    That foldable phone will be a joke, if it ever happens(like that under display finger print scanner, by the time they figure that out,every phone will have Face ID.
    Just find those commercials that bash Apple kind of weird,
  • I don't think the Note series needs to sell as much as the S series. I don't think innovation is the answer. More competitive pricing and getting the basics right ( like a larger battery) is what they should be doing. People who are buying One Plus and iPhone 8s in droves don't give two craps about "innovation".
  • So true. The pricing is on the extreme high side while the Chinese OEMs have a way with top end devices on sensible prices.
  • On the positive, Samsung Pay has finally gone active in South Africa.
  • Us S9 buyers are the same people that were there S7 buyers.
    We're on Samsung's S cycle, you know, last year's reimagined design with this year's new specs.
  • thing is, Samsung keeps thinking most of their clients (and Im one of them) are on Apple cycles with a new phone every year (which Im not)
  • Maybe if they brought the burgundy color to the US...
  • Even a new color option won't necessarily drive more people into buying S9s. The Galaxy S8 phones were phenomenal and the S9 is great too but the issue is it hasn't changed enough to justify spending another few benjamins when the S8 is still just as great and cheaper, meaning you can get 90% of the S9 with last year's flagship. Well, that and the whole smartphone market growing saturated shebang.
  • Slows sales because there tech support and Promissed security updates are horrible...improve those Samsung, or Sales will continue to fall
  • Another good point. Again, the basics. The industry has caught up to Samsung. Not a good time to skimp out on basic requests of customers.
  • Updates have nothing to do with it. If updates were an issue, people would have figured it out years ago. The S9 is just a minor refresh. No reason to update from the S8. Next year when the new S10 is released, sales will return.
  • At least they dont kid themselves thinking the Note 9 is gonna drive sales up in any way, because on top of being a niche product it suffers (in comparison to the Note 8) the same things the s9 does in comparison to the s8. Regular, yearly specs bump, that's about it. Oh yeah, maybe a fingerprint reader relocation, too. And I like how they keep throwing external factors as reasons why the s9 doesn't sell as well. Competition and price. Well, duh. Almost saying 'the mediocre flagship would sell just fine if it weren't for better alternatives'. Just say that your product is relatively out of touch, and it appears that the competitor you're chasing (Apple) isn't the one you should worry about.
  • No exact numbers given? Android Central, are you aware that publicaly traded companies have Investeor Relations webpages? Samsung published their earnings release in PDF. Samsung IM (Internet & Mobile):
    Revenue 24T KRW (down 20% yoy)
    Profit 2.67T KRW (down 34% yoy)
  • Are you aware that "no exact numbers" was referring to the number of handsets sold? Maybe it's hard to tell from up on that high horse
  • "Although no exact numbers were given, Samsung says that its IT & Mobile Communications division saw a drop in sales for both year-to-year and quarter-on-quarter performance due to the Galaxy S9 seeing "slow sales." " "Sales" in that context refers to revenue, not unit shipments. Additionally, AC is referencing the unit, IT & Mobile, as a whole. Samsung IM sells more than just smartphones. Samsung IM's top and bottom lines remain conspicuously absent from this article. Samsung is a conglomerate that also sells washers & dryers to TVs; including Samsung's total results w/o breaking out IM (which is arguable most relevant to AC's readership) is baffling.
  • Samsung has to change with the times The buy a phone every 2 years business model went out the window when U.S. carriers stopped subsidizing phones. If I'm going to spend $700+ on a phone I want that phone to last me at least 5 years and be supported that long.
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