Samsung misses profit estimate on weak Galaxy S9 demand

Samsung misses profit estimate on weak Galaxy S9 demand

Samsung's flagship Galaxy S9 smartphone

Sluggish global smartphone sales are starting to crimp earnings at Samsung Electronics, which posted profit that fell short of estimates.

The maker of Galaxy phones reported that operating income rose to 14.8-trillion won (US$13.2-billion) in the three months ended June, according to preliminary results released on Friday from the Suwon, South Korea-based company. That compares to the 15.3-trillion won average of analysts' estimates compiled by Bloomberg.

Smartphone sales started to cool last year after a decade of robust growth, but Samsung had managed to weather the slowdown, thanks to demand for memory. While the world's biggest chip maker dominates in both DRAM and NAND markets, the company has struggled with weaker-than-projected sales of its Galaxy S9 smartphones unveiled in the first three months of the year. Sales of organic light-emitting diode screens to Apple have also been weaker than expected, while the growth of semiconductor prices has been slowing.

Smartphone sales started to cool last year after a decade of robust growth, but Samsung had managed to weather the slowdown, thanks to demand for memory

“While chip sales keep rising, smartphones aren't looking good,” said Jung Sang-jin, a fund manager at Korea Investment Management. “While

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