Samsung Electronics says Q4 profit likely fell 29%; China demand weak
[SEOUL] South Korea's Samsung Electronics Co Ltd on Tuesday estimated a decline in quarterly operating profit for the first time in two years, as a slowing Chinese economy erodes demand for its chips and handsets.
Weaker earnings at the world's biggest maker of smartphones and semiconductors adds to worries for investors already on edge after Apple Inc last week lowered its quarterly sales forecast, in a rare move, citing poor iPhone sales in China.
Samsung, in a regulatory filing, estimated profit at 10.8 trillion won (S$13.1 billion) for October-December last year, down 29 per cent from the same period a year earlier. That compared with the 13.2 trillion won average of 26 analyst estimates in a I/B/E/S Refinitiv poll.
It also estimated a 11 per cent on-year revenue decline at 59 trillion won.
Samsung will disclose detailed earnings later in January.
Analysts expect Samsung's profit to decline through 2019 as weakness in China persists, Refinitiv data showed.
Prices for DRAM chips, which provide devices with temporary workspaces and allow them to multi-task, declined 10 percent in the fourth quarter, according to industry tracker DRAMeXchange.
Prices of NAND flash memory chips, which hold data permanently, slipped 15 per cent.
DRAMeXchange anticipates memory chip prices to fall 10 per cent on an average in the first quarter of 2019.
Reuters
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Technology
Brokers’ take: DBS cuts Venture Corp price target after Q1 earnings miss
Garmin’s Q1 results beat on strong demand for fitness, auto products
Foxconn’s musical chairs sound like punk rock
US sets up board to advise on safe, secure use of AI
Regulate AI? How US, EU and China are going about It
Meta’s results are best viewed through rose-tinted AI glasses