Samsung had already issued a warning that the first quarter of the year was not going to be very kind to their bottom line, and the results are in.
They weren't wrong, either; revenue for the company fell about 13%, while profits were down a painful 60%.
There's a multitude of things going wrong for Samsung as a whole, but it's not really the mobile division's fault. Sales of the Galaxy S10 have been solid, according to Samsung, but that's only a portion of their overall business. The memory chip and display segments, which typically bring in a ton of profit for Samsung, had a pretty rough quarter and dragged everything else down.
The display business of Samsung straight up lost money due to decreased demand for flexible displays and more competitors making larger displays.
Although, despite this not being the fault of weak Galaxy S10 sales, their mobile division did see an income drop due to more competition that seems to intensify every year. That's not exclusive to just Samsung, however, and seems to be a trend across the industry as a whole.
Going forward, Samsung doesn't expect its component business to recover quickly, but it shouldn't be as bad as this quarter. The Galaxy Fold should hopefully release sometime in Q2, but with the repeated delays and negative press surrounding it, it's hard to tell if that will actually move the needle for Samsung.
Past that, though, we've got the Galaxy Note 10 to look forward to, and that's always a solid performer for Samsung.
