Samsung forecasts 29% drop in quarterly profit
January 8, 2019 | Investopaper
Samsung Electronics forecasts a major drop of 29% in its quarterly operating profit for last three months of 2018. This decline has been led by slowdown in sales of Samsung smartphones and memory chips.
The operated earnings expected for the last three months of 2018 is 10.8 trillion won i.e around $9.7 billion dollar. Revenue is also expected to go down by 11% to 59 trillion won.
The firm has been lately hit by the under performance of its smart phone and low demand for its chips which had previously bolstered the earnings of the firm. This is the first quarterly profit drop in the span of two years.
Releasing a statement, the company said -“We expect earnings to remain subdued in the first quarter of 2019 due to difficult conditions for the memory business.” It also further referred to the dull demand and fierce competition from rivals for its low performance.
Previously, another tech giant Apple also reported an expected fall in its quarterly revenue for the first time in 15 years.
