Where are the voices about the great financial crisis of Samsung?

Are business market commentators shouting today about the great financial crisis of Samsung? Is the speculation about the end of innovativeness of a Korean company overflowing in the media? Is there a debate today about the "end of an era" associated with the withering sales results of Samsung smartphones?

I think I can not see. It's weird. For better financial results of "the worst quarter for a decade at Apple", not only dramatically sounding media discussions, but real evaporation of 30%. the value of the American company.

Meanwhile, let's compare the recent quarterly results of Apple and Samsung.

Apple - 4.5 percent revenue down to 84.31 billion dollars; 0.5 percent profit down to $ 19.97 billion. Samsung - 10 percent revenue down to 59.27 trillion Korean won, which corresponds to about 53.4 billion dollars; 29 percent profit down (!) 10.8 trillion won, or about 9.7 billion dollars.

For those who do not want to count, I am explaining - Samsung announced more than two times higher revenue drops and a several dozen times higher profitability drop from Apple. Let's add that Apple's nominal business was in the last 3 months of 2018 by 75 percent. greater.

Okay, let's take a look at the translation of the company from where this slump came from. Well, Samsung gives two main reasons:

  • the memory business (NAND and DRAM), in which Samsung is a world hegemon, suffered from "macroeconomic reasons of uncertainty and correction of inventory levels";
  • falling global sales of smartphones. The financial result on sales of Samsung smartphones fell from 2.4 trillion won a year earlier to 1.5 trillion in 4Q 2018.

What's more, Samsung clearly states that it does not expect the situation on the mobile market to repeat itself quickly. The declines in the sale of smartphones are to be felt throughout the first quarter of 2019 (which is interesting, because at the latest in early March, Galaxy S10 will appear on store shelves).

The results of competing companies should be analyzed in a wider, common context. So I recommend now just go back to a more careful analysis of Apple's results to confront them with those from Samsung.

The more so because both leaders agree that the big problem with the sale of smartphones is currently in China.



Where are the voices about the great financial crisis of Samsung?

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