قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Samsung warns its profits will drop 60% as smartphone demand slumps

Samsung warns its profits will drop 60% as smartphone demand slumps



The South Korean technology giant said Friday that it expects operating profit for the first quarter to plumme by 60% compared to the same period a year ago.
Samsung [196459003] ( SSNLF ) warned last week that its earnings would be hit by a slower demand for memory chips and display panels, a sign that device makers and their suppliers are coming under pressure. .

The company estimates that the operating profit for the first three months of 2019 will total 6.2 trillion Korean won ($ 5.4 billion), lower than analysts' already downbeat expectations.

It expects to report a sales decline of roughly 14% when full earnings are published later in April.

Samsung is the world's largest seller of smartphones. But it also has a huge business making key components for rival handset manufacturers.

The global smartphone market shrank more than 4% in 201

8 and could contract again this year, according to market research firm IDC.

China, the world's largest market for the devices, has been particularly weak. Apple ( AAPL ) Stunned global markets in January when it said iPhone sales would come in less than expected.
 Samsung's foldable phone isn & # 39; t about making money - and that's the whole point

]

Samsung's stock was little changed in Seoul trading on Friday, as investors were largely predicted the earnings slump.

Some analysts think that the downturn in earnings could be short-lived.

Investment research firm Fitch Ratings pointed out that demand for advanced chips has been rising in areas like automotive and industrial sectors, with Samsung well-positioned to benefit.

"We believe that Samsung's results are likely to recover towards the end of this year," Fitch analyst Shelley Jang wrote in a note to customers on Friday.

Sherisse Pham contributed to this report.


Source link