Samsung Profits Fall on Weak LCD, DRAM Prices

Samsung Electronics’ second quarter profits fell 26.2 percent from last year to 3.7 trillion won ($3.47 bil.), on weaker demand for memory chips and LCD displays. Revenues, however, rose slightly to 39 trillion won ($36.2 bil.) from 37.89 trillion ($35.3 bil.) in 2010.

The price of Samsung’s mainstay DDR3 2-gigabit DRAM memory chips fell 30 percent in the second quarter, according to Taipei-based Dramexchange Technology.

The price of Samsung’s LCD panels managed a rebound in April and May after several months of declines, but stayed flat in June.

Component sales account for about half of Samsung’s operating profit.

Samsung continued to enjoy robust sales and good margins on its smartphones and tablet PCs. It sold more than 3 million units of the new Galaxy S II smartphones during the first two months after its debut. About half of those sales were from the more profitable Korea market. The rest came from Europe and Asia. The Galaxy S II has yet to debut in the United States due to protracted wrangling over prices with mobile carriers.