Why Samsung's Growth Slowed Down In Q2

Samsung Electronics recently published its earnings guidance for Q2 2018, indicating that its growth is likely to slow down after posting a string of record profits over the last few quarters. The company expects its Q2 operating profits to grow by 5% year-over-year to 14.8 trillion won ($13.2 billion), with revenues likely to decline by about 5% to 58 trillion won ($52 billion). While the company is expected to break out its detailed performance when it publishes its final results later this month, we believe that lukewarm sales of the company’s latest flagship Galaxy S9 and potentially slower growth in the memory business likely impacted its performance.