Samsung Expecting Profits Slump For Q2; Huawei Ban Helps Company Earn More

South Korean smartphone giant Samsung has warned its investors of its profit slump in the second quarter. The plunge is expected to be around 56 percent. As of now, the company is experiencing some problems in its memory chip sales and other products.

Samsung is expecting to earn an operating profit of 6.5 trillion won (roughly $5.6 billion), according to CNN. In the previous year, the company expected to make 14.9 trillion won.

As of now, the company is supplying screens for other smartphone companies such as Apple and selling memory chips. Samsung and Apple had some differences in their screen deal as Apple’s orders for Samsung screens went down despite the two companies’ agreement. In addition to Apple having some complaints over the screens sent to them, Samsung’s production has been hurt as one of its factories is currently being allotted to Apple prior to this issue.

Meanwhile, its memory chip sales have yet to recover from last year, which also greatly affected Samsung’s sales. The company’s lowest operating profit was recorded when the Galaxy Note 7 users reported issues of their smartphones exploding and going up in flames and the company pulled all the units out of the market.

Daiwa Capital Market analysts also pointed out that Samsung’s flagship phone, the Galaxy S10, has not been doing well, which had also contributed to the company’s problems. As for the other Samsung devices with heavy problems, the company has also delayed the Galaxy Fold and put more time in its development after reviewers complained about its fragile build, with screens lasting only a few days breaking.

While the company is riddled with issues, Samsung is still somehow ahead of one of its main rivals, Huawei. The U.S. government recently banned Huawei from selling its phones. This situation has helped Samsung and other smartphone companies in getting ahead in the market as the U.S. is one of the major markets of smartphones and other smart gadgets.

For now, we’ll have to wait for Samsung to recover from this income slump. Perhaps, the company has a new device or plan to reveal in the Unpacked 2019 event in August.