In Weakness in semiconductors and liquid crystal displays are countering Samsungs growing strength in smartphones, making it difficult for the company to maintain its profit margins. In its regulatory filing, the electronics giant declared that it earned 3.51 trillion won ($3.33 billion) in the three months ended June 30. During the same period of the last year, the company had earned 2.28 trillion won. Samsung is the worlds largest manufacturer of memory chips, LCDs and flat screen televisions.
The profits of the company have been hammered down due to slack prices for electronic components amid oversupply and weak demand. Net profit slumped 30 percent in the first quarter amid declines in memory chip prices and reduced profitability in LCDs and TVs. Falling LCD prices have led to the display panel business racking up a substantial operating loss.
Samsung's shares, which hit a record high in late January, have lost 12 percent so far this year, while the broader KOSPI has gained 5 percent.
The companys memory business is showing lacklustre results as weak global personal computer sales have suppressed demand for DRAM, or dynamic random access memory, chips used in the devices. The only bright spot for the company is in the sale of mobile phones. Revenues from mobile business have risen by 45 percent from the year before. On back of the flagship device Galaxy S II, there is a rise in the sale of smartphones.
Ranked number two in mobile phones behind Finland's Nokia Corp., Samsung has sold more than 5 million units globally of the updated Galaxy S II since it went on sale in late April.
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