On Tuesday, media outlets including Reuters reported on the unusual move by Samsung Electronics. For the first time in its history, the electronics giant was forced to file a notice with the SEC about a larger-than-expected drop in revenue in the first quarter of calendar year 2019. The company does not provide details and refuses to comment until the announcement of a full report on the work in the specified period. The quarterly press conference and report are expected in about a week.
Samsung previously reported that the first quarter of calendar year 2019 will be worse than the same period in 2018. The company predicted, according to Refinitiv SmartEstimate analysts, that operating profit would fall by more than 50% to 15,6 trillion South Korean won ($13,77 billion), and revenue would fall from 60,6 trillion won to 53,7 trillion won ($47,4. 30 billion). The decline in revenue below the level of forecasts in Samsung is explained by a stronger drop in prices for DRAM and NAND memory. For example, as DRAMeXchange experts report, in the first quarter, memory becomes cheaper faster than forecasts, and contract prices for chips will drop by up to XNUMX% in the first three months of the year.
Another strong point of Samsung - OLED displays for smartphones and, in particular, for Apple smartphones - no longer saves the manufacturer's revenue. Sales of Apple devices are falling, and this does not contribute to the growth of the South Korean company's revenue. Thus, according to analysts at Daiwa Securities, in the first quarter, Samsung's display division will show operating losses of 620 billion won ($547,2 million). Added to this is the slowdown in the economy in China, which also hurts Samsung as a manufacturer deeply integrated into the Chinese economy.
The light at the end of the tunnel analysts and manufacturers see in the second half of this year. Micron said in a recent quarterly report that it predicts the memory market will begin to stabilize in June-August. Somewhere in August-September, the demand for displays for smartphones may go. Apple and other manufacturers will prepare new models and can count on the public's interest in what's new in autumn 2019. But before that, you still have to live, but for now everything is worse than expected.
Source: 3dnews.ru