Samsung Electronics is expected to experience a decline in profits of up to 60 percent in the first quarter of 2019 compared to last year. The South Korean technology company said the operating profit that ended in March was recorded at US $ 5.5 billion.
This figure decreased from the figure of 15.64 trillion won in the first quarter of 2018. Samsung will release full revenue for the first quarter of the end of April 2019.
Samsung shares also fell 0.11 percent at the opening of this morning, Friday April 4. This insignificant decline was expected because investors had predicted a decline in corporate profits for the period from January to March.
Previously, Samsung had predicted a larger price reduction for memory products which were a major source of profit in Samsung's business. This memory component is used for cellphones and company servers.
This price decline is caused by sluggish memory demand. This was made worse by the slowing of the purchasing power of data center companies to buy memory chips. Experts say this not only affects Samsung but also affects all companies engaged in the semiconductor sector.
Despite this, analyst from CLSA brokerage firm Sanjeev Rana said Samsung would experience an increase in revenue in the next few months.
Comments