Lower chip prices and drop in demand for OLED panels made Samsung announce Tuesday morning that first-quarter earnings will not meet analysts' expectations. It was only last week when the company said at its annual meeting that a slower growth in the world economy, coupled with weaker chip memory sales, would be driving revenue this year. next week. Market assessments provided by Refinetiv SmartEstimate call on the company to report an operating profit of 7.2 trillion thousand (equivalent to $ 6.4 billion) for the period from January to March. This would be a 54% reduction compared to the same period last year of 15.6 trillion profit that Samsung reported during the same period last year. Revenue is expected to fall from $ 60.6 trillion to $ 53.7 trillion, down 1
Earlier this month, Samsung released the Galaxy S10e, the Galaxy S10 and the Galaxy S10 +. "Lite" Samsung Galaxy S10e gained 9.2 (out of 10) in our model review, while the other two phones had 9 (again 10).
"The company expects the price drop to fall on the core memory chip products to be larger than expected."
In addition to introducing its new models, Samsung has released its new wireless Galaxy Buds this month. the initial sales of the accessory and the Galaxy S10 will be included in the first quarter results. Before the new devices entered the market, Samsung was struggling with the Galaxy S9 from 2018 and the Galaxy S9 + as the company had to resort to heavy discounts help clear the store Even Galaxy Note 9 is not protected by the curse although the device may have some life as the Galaxy Note 10 is still a few months later.
Next month Samsung will release the Samsung Galaxy Fold, the device has a 4.6-inch external screen and opens to become a 7.3-inch tablet, while this model carries a very high price of $ 1,980, initially it will be available in limited quantities, as a result of which the phone may not be able to lift Samsung's profits in the second quarter . The company that supplies competing Apple with AMOLED panels and other parts has said it has made $ 110 of 2017-2018 on every iPhone sold X. It is likely to continue to extract huge profits from every iPhone sold but sales of the 2018 models are at best slower, contributing to a fall in revenue and earnings for the first quarter. In fact, the entire smartphone business has had a smooth search, and this has had a very negative impact on Samsung's business as a phone maker provider.
The news does not seem terribly shocking to investors. In Korea, Samsung shares are traded at 45,200 ($ 39.94 USD), which is a decline of .66% for the day.