Samsung warns of profit fall
Written by NTN staff
Apple is not the only one with woes, as Samsung Electronics said it expects fourth-quarter operating profit to fall 29%.
Samsung, the world's largest maker of smartphones and semiconductors blamed the foreseen profit decline on “mounting macro uncertainties”, as well as lackluster demand for memory chips and intensifying competition in its handsets business.
Samsung said its memory business, which has represented about three-quarters of operating profits in recent quarters, would "remain subdued" during the first three months of 2019. Smartphone shipments for the market overall have been on the decline too in the last few quarters.
Samsung is the largest maker of DRAM and NAND flash. It also produces televisions and supplies components for the world's largest electronics companies. The company said it expected an operating profit of 10.8 trillion South Korean won ($9.7 billion), down 29% from 15.15 trillion won a year earlier. Samsung estimates revenue will decline to 11% to 59 trillion won.
The company reports its final results later this month.
Samsung’s warning comes a week after Apple made a surprise cut to its revenue guidance, blaming China's slowing economy for weakened iPhone demand. Moreover, most large silicon valley companies, including the GAFA, have been hit recently by something of a tech backlash, including rising US-Chinese tensions.