Samsung’s electronics arm has seen its net profits plummet in the first quarter of the year, as both its mobile and semiconductor earnings dive bombed.
The smartphone giant saw its net profit for the first three months of the year drop 56.85 per cent year-on-year from 15.64 trillion Won (£10.3 billion) to just 6.2 trillion Won (£4 billion), while sales fell 13.5 per cent to 52.4 trillion Won (£34.6 billion).
This marked the lowest net profit in over two years, which it largely attributed to falling sales in its semiconductor division, which represents its main source of income.
Sales in this division more than halved from 11.55 trillion Won (£7.4 billion) to just 4.12 trillion Won (£2.7 billion), which the company says it plans to rectify by ploughing $115 billion into its non-memory chip arm aiming to become the worlds largest producer of made-to-order computing chips.
Meanwhile its mobile business also saw sales fall 40 per cent to 2.3 trillion Won (£1.5 billion), and its display business posted an operating loss of 560 billion Won (£370 billion).
Despite the results, Samsung says that its Galaxy S10 lineup actually sold well, shipping 78 million phones and five million tablets over the same period.
The dismal reviews of its new flagship folding phone, which found many models broke after just a few days use, were not mentioned in the earnings results.
Though the issues facing its most recent model have not yet affected its earnings, analysts are expressing concern.
“Apart from its strength in components, it is worrisome that Samsung is not yet ready for emerging technologies,” SK Securities analysts Kim Young-woo said.