Samsung predicts first-quarter profit decline – Business

Samsung predicts first-quarter profit decline - Business

In an official statement, the South Korean giant prepared its shareholders for less positive results than initially expected.

Samsung Electronics said on Tuesday it expects first-quarter profits to fall below expectations. The drop is mainly due to the drop in the price of chips and LCD screens, reflecting the lower demand for smartphones that has been verified. Contributing to this decline are the weak sales of new iPhones, as Samsung is the supplier of the model's OLED panels.

The South Korean company had already warned its shareholders last week about the possibility of factors such as the slowdown in world economic growth or the reduction in demand for memory chips if they reflected in the results of 2019.

However, Samsung expects a resumption of memory chip sales in the second half of the year. These indicators were strengthened by the Japanese investment bank Daiwa Securities which, according to Reuters, forecasts an increase in demand not only for the chips but also for OLED screens during the same period.

The world leader in the smartphone, television and computer chip market expects a profit of $ 6.4 billion for the period from January to March 2019. In the same period last year it had billed about $ 13.8 billion, more than double. Total sales are expected to fall from $ 53.5 billion to $ 47.5 billion.

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