Operating profit of Samsung Electronics in the first quarter decreased by about 60% compared to the same period last year. At the same time, according to the same report, the company's revenues for the reporting period decreased by about 14%. All this reflects the difficulties that the manufacturer has faced due to falling prices for memory chips and other circumstances.
Recall that last week the company already issued an extremely rare appeal to investors, in which it warned the public that its profit in the first quarter of the year would be below market expectations. Analysts expect Samsung's troubles to continue into the second quarter.
The South Korean company now expects total sales of 52 trillion won (about $45,7 billion) and operating income of about 6,2 trillion won (~$5,5 billion). Samsung provides these preliminary figures at the start of each quarter, with more detailed breakdowns released at a later date.
Samsung said last quarter that the Galaxy S10 is expected to help support sales numbers, even though the flagship smartphones were only available for a few weeks out of the reported three-month period. The company has also previously said that overall global smartphone sales will remain largely flat throughout 2019, making it harder for Samsung to sell not only its own Galaxy phones, but components such as OLED screens and memory to third-party manufacturers. In addition, the demand for memory from the data center is unlikely to increase until the second half of the year.
Source: 3dnews.ru