Home / Technology / Samsung's profit warning shows the impact of slower iPhone sales

Samsung's profit warning shows the impact of slower iPhone sales

The Company expects its first-quarter earnings for 2019 to be disappointing due to lower chip prices and weaker demand for chips and display panels. "The company expects the magnitude of price declines in main memory chip products to be greater than expected," Samsung said in the regulatory filing. According to DRAMeXchange, prices for DRAM chips fell more than 20 percent in the first quarter of the year.

In other words, the company is feeling the impact of sluggish economies and is weakening smartphone sales worldwide. For example, Samsung offers OLED panels for Apple's newer iPhones, so slow iPhone sales would also impact the performance of the Korean company. The forecast reflects the tech giant's warning when it released the Q4 results for 201

8. At that time, Samsung expected that the profits for 2019 due to a weaker demand for memory would be expected folding phones. It's very possible that the tech giant will do more experimental projects as it tries to find the right formula to remain profitable in the future.

According to Reuters financial analyst firm Refinitive SmartEstimate expects Samsung's operating result for January to March to reach 7.2 trillion won ($ 6.4 billion). That's less than half of the $ 15.6 trillion ($ 13.8 billion) profit made in the same period last year. The company also expects revenues to decline from 60.6 trillion won (53.5 billion dollars) to 53.7 trillion won (47.5 billion dollars). Further official information will be provided when Samsung publishes its manual sometime next week.

Source link