samsung profit growth slows on smartphone weakness - samsung

South Korean tech giant Samsung Electronics today estimated that the company's revenue growth in the second quarter was the slowest in more than a year.
Analysts said weak smartphone sales could offset a record high in chip revenue.
The guide gives investors an insight into the serious impact of the decline in smartphone profitability on the company's profits after the company warned in April that revenue slowed in more intense competition.
The world's largest maker of memory chips, smartphones and televisions said operating profits for the three months from April to June would increase. 2% to 14.
8 trillion won ($13. 2 billion).
It just missed the average estimate of 14.
Thomson Reuters surveyed 18 analysts, 9 trillion won.
Analysts said that while the chip business will achieve record profits for the seventh consecutive quarter, the weak growth in smartphone revenue has raised concerns that the mobile business is supporting sales of its high-end Galaxy devices.
Worried about slowing profit growth and lack of technological innovation driving smartphone sales, Samsung's share price has fallen by about 12% this year.
The latest monthly data released this week by mobile phone market tracker Counterpoint Research highlights Samsung's problems, showing that its latest Galaxy 9 Plus high-end phone has been surpassed by Apple's iPhone 8 and has become the world's top mobile phone.
Smartphone sales fell due to weak sales in Europe.
Competition from cheap Chinese brands such as Xiaomi and Huawei has caused Samsung to lose market share in China and India.
However, while the smartphone business is in trouble, Samsung's profits are driven by strong global sales of DRAM and NAND chips, which account for about third in Samsung's revenue.
Overall sales may decline.
Samsung said the figure was 9% won compared to 58 trillion won in the same period last year, while analysts forecast an average of 59 won. 7 trillion won.
The company will release detailed earnings by the end of July.
The outlook for chips is still optimistic, and according to data from chip price tracking company DRAMeXchange, production of Apple's next-generation iPhone may support NAND Flash prices, as NAND Flash prices fell by 15% in the second quarter.
DRAM chips help devices perform multiple tasks, and the average selling price is expected to climb by 14.
Gartner, a research firm, said growth this year was 8%.
Investors are increasingly worried about
The trade war between China and the United States and how this will affect major exporters like South Korean tech champions.
There are also concerns about the price in China --
A survey of chip makers, including Samsung, could limit the rise in DRAM prices as China is the largest importer of memory products.
The high cost of chips has hurt many electronics manufacturers, and Chinese manufacturers have been hardest hit because their margins are lower than their competitors.