Samsung's second quarter profits fell 18 percent as the company navigated a mixed picture for TV demand as well as other moving parts. The sprawling company remains upbeat about tablets and smartphone demand.
The company reported a second quarter profit of 3.51 trillion won, down 18 percent from a year ago. Sales were 39.44 trillion won, down 4 percent from a year ago. All of Samsung's units showed sales and revenue declines except for telecom, which was boosted by mobile handsets.
More notable is Samsung's view of the industry. Here's a quick overview of what Samsung is seeing.
- Semiconductors: DRAM: PC demand is weak, but mobile and server applications look strong. NAND chips are exiting a seasonally slow period. Samsung sees PC shipment growth in the high single digits for the third quarter. NAND supply will be tight due to smartphone and tablet launches.
- Display panels: TV demand is weak and Samsung is seeing inventory levels rise. On the technology front, demand is strong as monitors are hampered by limited supplies. Tablet demand is also driving demand. Samsung expects tablet demand to keep increasing. Other markets are flat for the most part.
- Telecom: Samsung said shipments of phones increased in all regions. Developed markets are gobbling up smartphones. Feature phones are lagging a bit. Average selling prices are increasing. Handset demand is expected to increase in the third quarter and LTE services are boosting demand. Samsung also expects tablet demand to increase.