Trending

Stories

Samsung’s First Profit Drop in 2 Years – Estimated 29% Drop in Quarterly Profit

Must Read

Moupiya Dutta
Moupiya Dutta
She finds it interesting to learn and analyze society. she keeps herself updated, emphasizing technology, social media, and science. She loves to pen down her thoughts, interested in music, art, and exploration around the globe.

Samsung Electronic issued guidance today warning that revenue and profits for the three months ending December 31st, 2018, will be sharply down year-on-year. It has estimated a 29% drop in quarterly operating profit, its first decline in two years, as it flagged tough memory chip and mobile phone markets in a rare commentary.

Deteriorating relations between the U.S. and China, Samsung’s two biggest export destinations have hit demand for memory used in everything from personal computers to mobile devices, raising the pressure on a company struggling to revitalize its smartphone business. Compounding that challenge is a weakness at the rival and significant customer of components, Apple, which shocked global markets last week when it cut its sales outlook for the first time in almost two decades.

Also Read

The two main factors in Samsung’s poor performance are identified; unusually, Samsung has issued a statement explaining its guidance; the company typically waits for the full earnings release before commenting on its performance in detail.

Newman explained that data center companies that buy memory chips from Samsung and other chipmakers have slowed down their orders in the last few months. He said that the slowdown was a major driver of the magnitude of Samsung’s profit miss.

It’s tempting to compare Samsung’s predicament to that of Apple, which also issued an uncharacteristic earnings warning this month.  According to International Data Corporation, over the third quarter of 2018, Samsung saw a more than a 13 percent year-over-year decline in global smartphone shipments.

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Related

- Advertisement -
- Advertisement -
TikTok Targets $20B E-Commerce Expansion in Southeast Asia WatchOS 10: Automatic Night Mode for Apple Watch Ultra Twitter Blue: One-Hour Tweet Editing Window for Subscribers Google Pay Enables Aadhaar-Based UPI Authentication iOS 17: Improved Autocorrect with Personalized On-Device ML OnePlus Nord N30 5G goes official in the U.S. Apple Introduces Vision Pro VR Headset for Augmented and Virtual Reality Microsoft to Pay $20M Fine for Violating Children’s Privacy with Xbox Nothing Phone (2) Confirmed for India Production Fitbit Integration with Google Accounts Begins
TikTok Targets $20B E-Commerce Expansion in Southeast Asia WatchOS 10: Automatic Night Mode for Apple Watch Ultra Twitter Blue: One-Hour Tweet Editing Window for Subscribers Google Pay Enables Aadhaar-Based UPI Authentication iOS 17: Improved Autocorrect with Personalized On-Device ML OnePlus Nord N30 5G goes official in the U.S. Apple Introduces Vision Pro VR Headset for Augmented and Virtual Reality Microsoft to Pay $20M Fine for Violating Children’s Privacy with Xbox