Digital payments new norm during Ramadan

Ramadan is a time of reflection and togetherness. The pandemic has not changed this experience but shifted it to the online world. Digital Ramadan is now the norm and digital payments have played a key role in facilitating this. 

Whether it's shopping online for gifts, sending money to family and friends for celebrations or making donations to charity and causes we care about, digital payments have become a key part of how millions around the world celebrate Ramadan.

Mr. Daniel Lutaaya

“We expect this trend to intensify, especially for customers sending remittances to Africa,” said Sharon Kinyanjui, the Director of EMEA Receive Markets at WorldRemit. “The number of receive customers opting for digital payout methods such as mobile money has been on an upwards trend.” 

Mr. Daniel Lutaaya, a former boxer currently working in trading and marketing in the UK, says digital remittances have changed how he and his Kenya-based family celebrate holidays and important family functions.  

“During this time of the pandemic, I am planning to be close to my family, especially my wife Zaina Muhamed and immediate family members who I have not managed to visit in over a year. My daughter also recently finished studying at the United States International University, Nairobi, Kenya, and we are grateful for this milestone,” he said.

Mr. Lutaaya, who runs Diaspora Trading Services, a UK based trading and marketing firm, says digital remittances have become a key part of his life. “I send money back home every month, sometimes even on a weekly basis. I do it digitally and it is also received digitally,” he said, adding that this has saved time and money compared to when remittances were done through paperwork and agents. 

The former professional boxer, who plied his trade in the UK before an injury forced him to hang his gloves, said many migrants have increased support for their families and loved ones over the past year. “Now I am an entrepreneur, having studied media and event management program at the University of West London. I take pride in being able to support and stay connected with my loved ones through my business,” he said. 

Last year, Kenyans abroad sent back a record Ksh.341 billion representing an equivalent Ksh.932 million every day, according to data from the Central Bank of Kenya (CBK).

At WorldRemit, we understand the importance of sending money during this season and offer a number of International money transfer options including:

●Bank transfer

●Airtime top-up

●Mobile money

●Cash pick-up

Ramadan Kareem.

 

For more information, visit: www.worldremit.com 

 

Software Update Brings Powerful Galaxy Note10 Features to the Galaxy S10

The Galaxy Note10 and Note10+ are packed with powerful tools designed to help users unleash their creativity and be more productive. Now, with an update set for release Samsung Electronics is introducing many of those same bar-raising innovations – including features like AR Doodle, a built-in video editor and Link to Windows integration – to the Galaxy S10e, S10, S10+ and S10 5G.²

`

Once Galaxy S10 users download the update, they’ll notice that their smartphone’s pro-grade camera has become even more powerful. The update expands the camera’s Night Mode to include support for the front-facing camera as well – offering users more freedom to snap vivid shots after dark. It also introduces enhanced Super steady video stabilization, as well as support for dynamic Galaxy Note10 functions like AR Doodle and Live Focus video recording. The former lets users enhance their videos with fun, augmented-reality drawings and messages, while the latter lets them apply bokeh effects (including blur, big circle, color point and glitch) to videos recorded with the front or rear camera.

Once Galaxy S10 users capture a memorable clip, the camera’s new, Gallery app-accessible video editor offers all the tools they’ll need to turn it into a shareworthy video. This versatile feature makes it easy to edit videos like a pro, and features simple tools for trimming clips, stitching them together, adjusting playback speed and more. You can even use the function to add subtitles and background music to clips to make your content more unique.

The update also incorporates support for Samsung DeX for PC. Once users download the app from SamsungDeX.com, they’ll be able to launch Samsung DeX on their PC or Mac simply by connecting their Galaxy S10 to their computer via USB cable. Link to Windows support has also been added, which means that Galaxy S10 users will be able to wirelessly connect their phone to their Windows 10 PC and easily view its contents, send and receive messages, and sync recent photos directly from their computer.

Apps that Galaxy S10 users rely on every day, including Samsung Pass and Messages, have also been made more versatile and convenient. Now, Samsung Pass’s setup has been simplified, making it easier for Galaxy S10 users to utilize their device’s advanced biometric technologies to log in to apps and websites quickly and securely. In the Messages app, new icons for adding photos and videos have been positioned to the left of the text window to offer users easy access to the files they need. 

As Dudu Mokholo, CMO: Samsung Central Africa, explained, the Galaxy S10’s update reflects Samsung’s commitment to offering more users access to exceptional innovations. “At Samsung Electronics, we’re constantly exploring ways to offer Galaxy device users the best possible smartphone experience, and this software update is an extension of that commitment,” said Dudu. 

Two million primary school going children enrolled in hygiene program

In the past five years, over two million primary school going children have undertaken the Dettol sponsored hand-washing hygiene program countrywide. 

The announcement was made earlier on today during the commemoration of the 11^th Global Handwashing Day held at Railway Training Institute School in Nairobi County. 

The program which was launched five years ago to commemorate this day is geared towards reducing sanitation-related ailments among school-going children across the country.

Celebrated globally, on October 15^th every year, the handwashing day promotes the vital importance of proper hand washing with soap in the prevention of diseases.

Speaking during the celebrations, RB Africa Expansion Director Health, Dele Adeyole said, “This year’s theme is “Clean Hands for All”, and aims at fostering inclusivity for all when addressing handwashing disparities.”

“The theme is anchored on Sustainable Development Goal 3 which reflects on Good Health and Well Being, SDG 6 on Clean Water and Sanitation and SDG 10 on Reducing Inequalities,” he explained. 

According to the United Nations children's agency UNICEF, hand washing with soap, even before preparing food, is rarely practiced in many developing countries - leading to the rapid spread of deadly bacteria, diarrhea and pneumonia in young children.

Every year, preventable diseases like diarrhoea and pneumonia claim the lives of 2.8 million children across the globe before they reach the age of five. The first 28 days of a child’s life are the most critical.

In Kenya, more than 34,000 newborn babies die each year within their first month of life – a figure that translates to more than 90 deaths per day. A 2017 study by the International Journal of Community Medicine and Public Health reveals that diarrhea is the fourth most common illness seen in health facilities in Kenya and accounts for one in five of all hospital admissions. 

It is the fourth overall most common cause of death among children under five years of age in Kenya, with a case fatality of up to 21%. 

The study further notes that hygiene interventions including hygiene education and promotion of hand washing can reduce diarrhea cases in Kenya by up to 45 per cent.

On his part, the Nairobi County, Water, Sanitation and Hygiene Coordinator, Erick Inda called upon private sector players and county governments across the country to scale up efforts in creating continued awareness on sustainable personal hygiene and its significance in improving educational outcomes in schools.

“This year’s theme “Clean Hands for All” is so timely for all of us to highlight the importance of hand-washing for particular segments of our society, including childcare workers, health professionals and those without consistent access to clean water.”

In Kenya, Dettol has reached over 2 million mothers in both the government and private health sector, teaching them these basic hygiene habits and sampling soap to them. Additionally, Dettol has over the years focused its investment in school hygiene programs, targeting children in both urban and rural areas

Galaxy Note10 features simple, eco-friendly packaging that utilizes sustainable materials in place of plastics and vinyl

Striking a perfect balance of power and pocketability, the Galaxy Note10 and Galaxy Note10+ pack an array of bar-raising performance technologies and productivity tools into a slim, nearly bezel-less design that’s as stunning as the devices are powerful.
Yun-je Kang, Senior Vice President and Head of Samsung Electronics’ Design Team, summed up the philosophy behind the flagships’ design. “These days, our smartphones are always in our hands, and they’re becoming items that express our individuality and preferences,” said Kang. “From the beginning, we worked hard to achieve a design that reflected a deep understanding of how consumers use their smartphones today.”
Let’s examine how Samsung optimized the Galaxy Note10’s form factor to offer Millennial and Gen Z users a more immersive and productive smartphone experience.

Packaging That Puts the Planet First
When developing new Galaxy devices, Samsung prioritizes enhancements that make its powerful innovations simpler and more sustainable. Sustainability has never been more important to consumers – particularly Millennials. In fact, according to a recent Nielsen report, up to 73 percent of Millennials say they’d be willing to pay extra for sustainable goods.

Like the Galaxy S10 before it, the Galaxy Note10 features simple, eco-friendly packaging that utilizes sustainable materials in place of plastics and vinyl, and was designed with a focus on consuming fewer resources. Now, each smartphone and its components are fitted into a sturdy pulp mold rather than being packaged separately.

Other environmentally friendly adjustments include Samsung’s decisions to use FSC (Forest Stewardship Council)-certified paper when producing the Galaxy Note10’s packaging and manuals, replace plastic ties with paper alternatives, and utilize 20 percent recycled plastic when crafting the devices’ chargers.

In addition to utilizing more environmentally friendly materials in its products and packaging, Samsung continues to explore innovative ways to reduce electronics waste through initiatives like the Galaxy Upcycling program. By championing the benefits of upcycling, which involves finding new and useful applications for old technology, the company’s efforts are not only helping to save more devices from ending up in landfills; they’re also spurring the development of dynamic technologies with potential applications in the worlds of healthcare, education and more.
As Kang explained, sustainability remains a guiding focus when designing new Galaxy innovations. “Sustainability is an important value in Galaxy device design,” said Kang. “Going forward, Samsung will continue to pursue sustainable innovation – not only by simplifying products’ designs, but also by removing unnecessary elements, and by replacing materials with more eco-friendly alternatives.”


Sleek and Slim, with an All-New S Pen

The Galaxy Note10 features a streamlined form that’s comfortable to grasp and looks as if it were chiseled from a single piece of glass. Simple but solid, the smartphones’ monolith-like frame supports a nearly bezel-less display, which offers multitasking Note users more room to do what they do best.
The smartphones’ brilliant Cinematic Infinity Display gracefully flows over the edges, blurring the line between body and display. Centered at the top is the in-display cutout for the front-facing camera. In addition to lending the screen a balanced aesthetic, the lens’s placement opens the door for users to enjoy a wide range of fun and inventive wallpaper designs that utilize the camera in creative ways.

In addition, the Note series’ signature feature, the S Pen, has been updated with a redesign and a slew of convenient enhancements, including support for multiple hues in Samsung Notes. Now, when using Samsung’s powerful notetaking app, users can easily save a preferred pen color and style as their favorite pen, load it with the touch of the S Pen’s button, and start writing and drawing to their heart’s content. Moreover, the S Pen’s seamless integration into the Galaxy Note10’s body enhances the devices’ unibody aesthetic.
The S Pen itself is comfortable in the hand, and an absolute pleasure to use. Samsung eliminated as many unnecessary elements as possible when refining the S Pen’s design, resulting in a sleek and sophisticated form. The S Pen’s Samsung logo and metallic section – fixtures of previous S Pens’ designs – have also been removed to enhance the tool’s elegant aesthetic.

To make users’ experience even more satisfying, Samsung also equipped the new S Pen with the ability to recreate the actual sounds that pens and other utensils make when writing or drawing. So scribbling a note on the Galaxy Note10’s display sounds just like scribbling on paper. And each time the user places the S Pen back in their device, they’ll hear a slight click, like the sound that a cap makes when it’s placed on a pen.

More Choices and Colors
The introduction of the 6.3-inch Galaxy Note10 and the 6.8-inch Galaxy Note10+ marks the first time that a Galaxy Note will be available in two sizes. Offering the newest Note in a compact form factor – alongside a model similar in size to previous editions – enables smartphone users who prefer a smaller screen to experience the signature Note features that make these devices so special.
The Galaxy Note10’s gorgeous design is complemented by a selection of three likewise stunning color options: Aura Glow, Aura White, and Aura Black. The latter two hues are exquisite in their luster, as is the iridescent Aura Glow, which reflects a rainbow of colors depending on the angle of the light, in what amounts to an eye-catching visualization of the smartphones’ ability to streamline a wide range of user interests. Additional color options – available in select markets – include the equally beautiful Aura Red, Aura Pink and Aura Blue.*

To offer users more ways to make their smartphone their own, the Galaxy Note10 also features a wide-ranging accessory selection that includes stylish covers of various colors and materials. Choose the Clear View cover for a practical look, or the Leather Cover for a more classic aesthetic.

A sustainable approach to doing business, the Samsung way.

The Samsung Delight Store on Kenyatta Avenue, Nairobi

Samsung optimizes costs and promotes synergy to ensure economic sustainability, mandates adherence to international regulations and transparency for social sustainability and insists on only working with certified Eco-Partners the world over. The company works relentlessly to help its suppliers achieve growth according to the belief that Samsung’s success is rooted in the competitiveness of its suppliers at every level.

Selection of Suppliers
Samsung evaluates prospective suppliers based on criteria that include EHS (environment, health and safety), labor and human rights, and Eco-Partner standing. After a company passes the initial screening, in-house experts in each category are deployed to conduct on-site assessments of the prospective supplier. Companies are required to comply with regulations regarding the handling of chemicals of concern, bans on discrimination and inhumane treatment and social and environmental impact, among others.

An open-sourcing program is used to allow companies to apply to become Samsung suppliers. The International Procurement Center (IPC) and Global Supplier Relationship Management System (G-SRM) accept submissions from organizations that want to propose use of their components or materials for Samsung products. Samsung’s IPCs are additionally present in strategically significant locations all over the world to monitor regional technology trends and identify potential suppliers. These methods allow Samsung to ensure that its supply chain remains competitive, as well as sustainable.

Once new suppliers are brought on-board, Samsung looks to heighten transparency by disclosing its list of suppliers with their consent. From there, procurement operations are managed by an integrated procurement system. The company requires suppliers to adhere to the Samsung Supplier Code of Conduct, which ensures that they operate in accordance with local laws and regulations, while helping them maintain responsible management of their working environments.

Supplier Evaluation
Samsung performs in-depth supplier evaluations annually. During these evaluations, suppliers’ competitiveness and ability to maintain sustainability are measured using eight evaluation criteria: technology, quality, responsiveness, delivery, cost, EHS, finance, and law. Several methods are employed in the evaluation of suppliers, including on-site inspection and the review of previously uploaded data. Evaluations are carried out on an ongoing basis throughout the year, allowing suppliers to monitor their performance along the way. In 2018 Samsung evaluated 91% of its total suppliers, with those who had been registered with the company for less than a year excluded from evaluation. The company also requires all primary suppliers to complete annual self-assessments according to 85 criteria set out by the RBA (Responsible Business Alliance), of which Samsung is a member.

Samsung also conducts both on-site and third-party audits of its suppliers. On-site audits are led by RBA auditors, and conducted by dedicated teams who interview suppliers’ employees and examine their workplaces. After the audit is carried out, Samsung devises final improvement tasks, which are expected to be completed within 30 days. Applying the same criteria as the RBA, Samsung achieved a compliance rate of 91% for on-site audits in 2018, and the company is making further efforts to continue lifting that number. Also in 2018, Samsung drastically increased the number of third-party supplier audits, especially in the Southeast Asian region, where some concerns around working environments had been raised. Despite the significant increase in the number of third party audits in 2018, compliance rates were relatively consistent with those from 2017, implying that efforts to improve suppliers’ working environments had been successful.

Samsung charges first-tier suppliers with the evaluation of their relevant sub-suppliers, making them responsible for evaluating working conditions and ensuring compliance. Samsung has developed and distributed a safe management guidance to first-tier suppliers that assists them in evaluating the environmental and health and safety performance of lower-tier suppliers. First-tier suppliers are held accountable for ensuring a safe working environment at lower-tier suppliers and honestly reflecting the outcome of evaluations.

Why QLED TV is the Technology to Watch Out for in 2019

Samsung has been a pioneer in TV design for 50 years. Over that time, Samsung has researched what people love most about TV – the way it brings friends and families together and the many details that amplifies the viewing experience. This knowledge has led to innovation that has transformed how people watch TV and is one of the reasons it has been global number 1 for the 13 years. The 2019 QLED line-up builds on this legacy in a big way.

“Pictures that are as breath-taking as they are ground-breaking” is how Forbes Magazine described the Samsung QLED TV it reviewed in February this year. This is a sentiment that has been echoed by reviewers around the world. TechRader addressed the QLED versus OLED debate by citing the Samsung 65Q90R as ‘’Capable of competing with and often surpassing even the best OLED’s.” Powered by Samsung’s patented Quantum Processor, the 2019 QLED TV line-up features more screen size options, stunning picture quality enhancements, dazzling colours from every angle, exciting new design elements and intuitive smart TV upgrades.

QLED is Leading the Way

QLED TVs use quantum dots to enhance performance, delivering better brightness and a wider colour spectrum. That’s because the dots act like a filter when applied on top of an LED backlight. This produces a light purer than an LED can provide. Beyond TV viewing, QLED is also the best for gaming as it has the fastest refresh times, which could be the difference between victory and losing a precious lifeline. QLED TVs are also far brighter than current OLED TVs. For example, the 65” Q90 can push out a peak measured light output (on a white HDR window filling 10% of the screen) of 2050 nits. That’s seriously impressive.

QLED Beats the Burn

And the innovation doesn’t stop at just the quality of the overall picture but on its impressive performance in another crucial area that requires everyone’s attention. Since QLED TVs don’t use organic elements, they are essentially immune to screen burn-in. This is a display issue in which certain facets of an image shown on a TV screen, such as a channel logo are either not shown properly, or fragments of that image remain on the screen. It then appears longer, as though it is embedded onto the display. This has been cited as one of the crucial flaws of OLED TV display technology. In fact, a quick search for “OLED Burn-in” on YouTube shows the high volume of criticism from those who have experienced the issue first-hand, as well as a number of burn-in tests, which compare Samsung’s QLED TV and OLED TV to demonstrate how the two displays differ on this very critical concern. A helpful video to view is https://www.youtube.com/watch?v=xZHf8AgoLIU. Clearly, Samsung has mastered an area that can impact viewing in a big way. You

  

Consumers Now Have Access to More Content Than Ever

As announced at CES 2019, Samsung has taken the user experience to the next level by offering iTunes Movies and TV Shows and Apple AirPlay 2 support on 2019 Samsung Smart TV models. In an industry first, a new iTunes Movies and TV Shows app is available on the QLED range. It works seamlessly with Samsung’s Smart TV Services, the new Voice Command and Search, to create a consistent experience across Samsung’s platform. With AirPlay 2 support, Samsung customers will be able to effortlessly play videos, photos, music, podcasts and more from Apple devices directly to Samsung Smart TVs, including QLED 4K and 8K TVs as well as other Samsung UHD and HD models. Additionally, it works with Amazon Alexa and Google Assistant.

Samsung’s 2019 QLED line is designed for users who want the best combination of picture quality, smart TV capabilities and design. This year’s line-up represents its largest screen size offering ever. It brings together innovative feature enhancements and exciting content and service partnerships to deliver a truly ground-breaking viewing experience and unprecedented value.

Samsung Electronics Announces Second Quarter 2019 Results

Samsung Electronics today reported financial results for the second quarter ended June 30, 2019. The Company posted KRW 56.13 trillion in consolidated quarterly revenue and KRW 6.6 trillion in quarterly operating profit. 

The weakness and price declines in the memory chip market persisted as effects of inventory adjustments by major datacenter customers in the previous quarters continued, despite a limited recovery in demand.

The Display Panel Business reported improvement due to a one-off gain in mobile displays and stronger sales of rigid OLED panels, which offset losses from large displays.

The Mobile Business posted stronger shipments on new mass market models but was overall weighed down by slower sales of flagship models and increased marketing expenses. The Network Business posted solid results on the commercialization of 5G service in South Korea.

The Consumer Electronics Division was boosted by strong sales of new appliance products and improved profitability of refrigerators and washing machines, although profits from TVs fell slightly YoY due to intensifying competition.

Looking ahead to the second half, Samsung expects persistent uncertainties in the memory business, although demand is seen growing further on strong seasonality and adoption of higher-density products. For system semiconductors, higher demand in mobile APs, image sensors and display driver ICs (DDIs) is also expected to be seen.

For displays, new smartphone product launches are set to help mobile display earnings but overall sluggish demand in the broad smartphone market may limit upside potential.

As competition in the smartphone market is seen increasing in the second half, Samsung plans to enhance its product lineup and expand sales of new mass market models. The Network Business will prioritize building the foundation for its global 5G business expansion.

The Consumer Electronics Division expects a seasonal boost in TV sales and will focus on premium models, while offering new appliances such as Bespoke refrigerators and AirDressers.

The Company is facing challenges from uncertainties not only in business areas but also from changes in the global macroeconomic environment. Samsung will, however, continue to invest in enhancing business capabilities and future technologies, including 5G, system semiconductors, artificial intelligence and automotive components, for longer-term growth.

In the second quarter, Samsung Electronics’ capital expenditure stood at KRW 6.2 trillion, including KRW 5.2 trillion spent on semiconductors and KRW 0.5 trillion on displays. Total capital expenditure in the first half was KRW 10.7 trillion, including KRW 8.8 trillion for semiconductors and KRW 0.8 trillion for displays.

The main portion of the Company’s 2019 capex is earmarked for building infrastructure to address demand beyond 2019, and a larger percentage of this year’s investment will be made in the second half.

Semiconductor Sees 2H Demand Recovery Amid External Uncertainties

The Semiconductor Business posted consolidated revenue of KRW 16.09 trillion and operating profit of KRW 3.4 trillion for the quarter.

Despite weak market conditions, the Memory Business saw demand for NAND and DRAM increase as mobile and storage applications continued to adopt higher-density products and as datacenter customers resumed purchasing. In the second half, demand is expected to grow although the Company sees volatility in the overall industry due to increased external uncertainties.

For NAND, demand for high-density, high value-added datacenter and mobile storage is likely to continue to grow and the market is expected to gradually stabilize from the third quarter. In SSD, deployment of high-density, high-performance products for datacenters will expand, while demand for mobile applications is expected to increase with the release of high-end smartphones with storage of more than 128GB. The Company will focus on strengthening competitiveness in the premium market and plans to mass produce 6th generation V-NAND this year.

For DRAM, overall demand is expected to increase due to seasonal effects amid external uncertainties. Server demand is expected to increase gradually as customers adjust their inventory levels and resume purchasing, while PC demand is also likely to expand. Memory demand from mobile applications is expected to show a steady increase due to the launch of new models from major customers and the trend toward high-density products. The Company plans to actively address customer demand through a flexible product mix and maintain technical leadership with the ramping up of 1Y-nm products.

For the System LSI Business, earnings were solid as demand increased for multiple cameras and high-resolution, large-pixel image sensors. The Company also increased the supply of 5G chipset solutions and continued to develop a next-generation one-chip 5G System-on-Chip for future technology leadership. In the second half, demand for mobile AP, image sensor, and DDI products is expected to grow on stronger smartphone seasonality. Looking ahead, Samsung plans to increase the supply of high value-added products including 64MP image sensors and EUV 7-nm APs and also diversify product offerings by developing 3D/fingerprint-on-display sensors and chips for automotive and IoT applications.

For the Foundry Business, results were robust on the back of strong demand from a major customer’s 8/10-nm mobile AP and image sensor products. In addition, new orders from customers increased in the 10/14-nm process and applications diversified to include mobile, HPC, automotive and network products. In the second half, earnings growth is expected to continue due to the ongoing expansion of orders for AP, image sensors and DDI as well as increased demand for HPCs, including crypto currency mining chips. The Company plans to start mass production of EUV 6-nm process and aims to strengthen its competitiveness through tape-out of the EUV 5-nm process and by completing 4-nm process development.

Display Sees Further Improvement in 2H

The Display Panel Business reported KRW 7.62 trillion in consolidated revenue and KRW 0.75 trillion in operating profit for the quarter, returning to a profit from the previous three-month period thanks to a one-time gain and a gradual recovery in customer demand.

Mobile display earnings increased, led by higher shipments of OLED panels featuring new technologies such as fingerprint-on-display and hole display. Large display sales also saw a slight improvement from the previous quarter on demand for premium panels and reduced costs 

Looking ahead to the second half, Samsung expects a further recovery in mobile displays from stronger sales and higher production, as major customers are planning to launch new products. Demand for OLED screens is seen to grow steadily as the smartphone industry increasingly adopts slimmer displays to accommodate 5G-enabling components.

Samsung will continue to incorporate more value-added features into its panels and improve production efficiency, while closely monitoring and responding to global macroeconomic uncertainties and their potential negative impact on the market.

For large displays, despite growing demand for premium TV panels, continued capacity expansion in the overall LCD industry is likely to weigh on market conditions. Samsung will continue efforts to improve profitability by focusing on premium TV panels and expanding in other applications such as monitors and Public Information Display.

Mobile to Enhance Flagship Lineup and New Galaxy A series

The IT & Mobile Communications Division posted KRW 25.86 trillion in consolidated revenue and KRW 1.56 trillion in operating profit for the quarter.

While the overall market saw demand for smartphones decline due to the negative macroeconomic environment and seasonal weakness, Samsung’s smartphone shipments increased QoQ led by strong sales of the new Galaxy A Series, including the Galaxy A50 and A70. However, sales of flagship models fell QoQ on weak sales momentum for the Galaxy S10 and stagnant demand for premium products.

Increased costs associated with growing competition in the mid- to low- end segment and inventory adjustments of older models resulted in a drop in profit for the Mobile Business. On the other hand, earnings for the Networks Business improved thanks to the expansion of commercial 5G service in South Korea and LTE networks in overseas markets.

In the second half, the overall mobile market demand is expected to remain weak due to growing uncertainties over the global economy and trade. Samsung will continue to strengthen its flagship lineup and increase sales of new mass market models. The Company will promptly respond to the changing business environment, and step up efforts to secure profitability by enhancing efficiency across development, manufacturing and marketing operations.

In the third quarter, Samsung will focus on successful launches of new innovative products – the Galaxy Note 10 and Galaxy Fold. It will enhance the 5G smartphone lineup to take the lead in the new market and introduce more competitive A series models in the second half to extend the ongoing positive momentum in mass market smartphone sales.

The Network Business will continue to solidify its position in the global 5G market, leveraging its leadership in the 5G service commercialization in South Korea and the United States.

Consumer Electronics Boosted By Digital Appliances

The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, recorded KRW 11.07 trillion in consolidated revenue and KRW 0.71 trillion in operating profit for the second quarter of 2019.

Earnings for the Visual Display business edged down both QoQ and YoY due to intensifying price competition in the market. However, Samsung’s product-mix improved in the second quarter via early launches of new models and the expansion of premium product sales such as QLED and super-large screen TVs.

Despite negatives such as unfavorable foreign exchange rates in some emerging markets and increasingly protective global trade practices, conditions in the TV market are expected to stay largely unchanged in the second half of 2019. Samsung plans to maximize end-year sales through close cooperation with retail partners and cementing the 8K leadership by positioning QLED 8K TVs as mainstream TVs.

For the Digital Appliances business, profits grew significantly YoY thanks to improvements in the profitability of key appliances like refrigerators and washing machines. Strong summer demand of air conditioners including Samsung’s Wind-Free Air Conditioner also contributed to robust sales.

Through the rest of the year, Samsung will focus on marketing new lifestyle products for consumers, such as Bespoke refrigerators and AirDressers. The Company will also continue to strengthen the B2B business which includes built-in appliances and system air conditioners.