The company expects earnings for the first quarter of 2019 to miss expectations due to the decline in chip prices as well as slower demand for chips and display panels. "The company expects the range of price cuts in core chip products to be higher than expected," Samsung says in the regulatory documentation. According to DRAMeXchange, DRAM chip prices have fallen by more than 20% in the first quarter of the year.
In other words, the company feels the effects of slow economies and weakens the sales of smartphones around the world. Samsung delivers OLED panels to Apple's newer iPhone phones, so iPhone sales slowdown will also affect the productivity of the Korean company. The forecast reflects the tech giant's warning when it publishes its results for the fourth quarter of 201
8. At that time, Samsung said it expects lower revenue for 2019 due to the weaker demand for memory, which is part of the reason why investing in new categories like folding phones. It is very possible to see more experimental endeavors by the technology giant as it tries to find the right formula to remain profitable in the future. According to Reuters
the financial analyst firm Refinitiv SmartEstimate puts Samsung's operating profit in January to March at 7.2 trillion dollars (6.4 billion dollars). This is less than half the profit of 15.6 trillion. ($ 13.8 billion) reported by the company in the same period last year. The company also expects sales to drop from 60.6 trillion stinks ($ 53.5 billion) a year ago to 53.7 trillion ($ 47.5 billion). We will get more official data when Samsung releases its guidelines sometime next week.