Samsung hopes 5G will save its slumping profits this year

Photo by Chris Welch / The Verge

Samsung Electronics just released fourth-quarter earnings that told much the same story as the rest of 2019. Revenue was more or less flat year-on-year — up 1 percent to 59.9 trillion won ($50.7 billion) — while operating profit slid 34 percent to 7.1 trillion won ($6 billion).

The primary reason for the decline remains the fall in prices of memory chips, Samsung’s biggest profit driver in recent years. The display panel business also saw profits fall year-on-year due to weak demand. The mobile division, on the other hand, did better than a year ago, with Samsung calling out “solid” flagship sales and the profitability of phones like the Galaxy A series.

Samsung is hoping that the wider adoption of 5G in 2020 will improve its numbers...

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