Samsung's Q2 operating profit growth slows after seven quarters

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However, from them, we can guess that in other markets the price of the Galaxy Note 9 may be similar to the price of the Galaxy Note 8; in the USA, the Note 8 started at $929 unlocked, and in the United Kingdom, £869.00. It was Samsung's slowest profit growth for the company in more than a year. The Korean won weakened against the United States dollar but rose against the euro and several other key currencies, resulting in a negative impact of net KRW400 billion on the quarterly operating profit compared with the previous quarter.

During the second quarter, Samsung's semiconductor business generated 11.61 trillion won in operating profit, almost 80 percent of the entire operating income.

Net income rose to 11 trillion won (S$13.4 billion) in the three months ended June, the Suwon, South Korea-based company said in a filing on Tuesday (July 31). Now, Samsung has also given a price cut to the popular Galaxy J6 smartphone for the second time.

"The outlook for the memory chip business remains strong across all applications thanks to demand for server and PC memory, as well as new mobile product launches", Samsung said in a statement.

Competition would heat up in the coming months as new smartphone models were released, it added.

With the chip business accounting for a whopping 78.1 percent of the combined operating profit in the second quarter, however, industry watchers said Samsung should do more to ease such a heavy dependency.

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View our interactive dashboard analysis, which outlines our expectations for Samsung in 2018.

Amid the sluggish premium smartphone market and intensifying competition, Samsung's smartphone shipments and revenue declined QoQ due to the slow sales of Galaxy S9 and S9+ as well as the phasing out of older low-end models. Notably, BOE, which is heavily subsidized by the government, is the world's leading large-panel maker for TV screens, and it is aggressively venturing into producing OLED displays, a market dominated by Samsung.

It also sounds like the company plans to lower the prices of its flagship devices - in Lee's words, "strengthen price competitiveness" and "aggressively respond to the market condition" while improving their underlying technology. Inside, Samsung has opted to go for a chipset from Qualcomm rather than something in their Exynos collection. By segment, the chip business accounted for 6.1 trillion won, followed by the display division with 1.1 trillion won.

The IT & Mobile Communications (IM) division, which makes smartphones, posted an operating profit of 2.67 trillion won (2.39 billion US dollars) on revenue of 24 trillion won (21.5 billion USA dollars).

Analysts also noted Samsung's ongoing failure in China, where it previously owned a double-digit share of the market.