The world’s largest smartphone maker reported a 56% fall in operating income to about 6.5 trillion won (US$5.6 billion) in the three months ended June. That compared with analysts’ average forecast for a 59% slump to 6.1 trillion won. Sales came in at 56 trillion won, versus expectations for 54.5 trillion won. The company won’t provide net income or break out divisional performance until it discloses final results toward the end of the month.

Samsung is the foremost producer of high-margin organic light-emitting diode displays, which hit a snag last year when supplies to Apple Inc suffered due to the less-than-expected popularity of the iPhone X. Samsung’s search for new buyers has since paid off, with Chinese manufacturers turning to the South Korean company for the lucrative smartphone screens.

Its memory chips remain a key barometer of global demand for devices from computers to smartphones and have been one of the hardest-hit components since Trump-imposed tariffs took effect in May. The jitters over Samsung’s biggest cash cow grew when Japan this week slapped export restrictions on materials needed for display and chip production, potentially hammering Samsung and rival SK Hynix Inc.

“It will take more time to see the recovery of business sentiment for semiconductors,” IBK Securities analyst Kim Woon-ho wrote in a July 2 note. “Demand would rise in 2H but it will be lower than the prior estimates.”

Samsung shares have gained 19% this year through Thursday, sharply outpacing the Kospi’s 3.3%.