Samsung announces the financial results are weak due to sluggish demand for memory chips

The gate Arab News Technical The Gate Arab News Technical

Announced Samsung on Thursday announced its financial results for the fourth quarter of 2018 and warned of weak earnings in the year 2019, where the recorded decline in its operating profit for the final quarter of last year by 29% dragged down by a slowdown in demand for memory chips.

Said the Korean company leading the world market in the field of computer chips and smartphones, said she expects to “go down yearly gross earnings” this year, although sales of memory products will start to rebound in the second half.

Analysts say that uncertainty over trade tensions between the United States and China, the Chinese economy is slowing bode honestly to the electronics world in the year 2019, which presses on the demand for memory chips, smartphones and display screens.

But some investors are hoping to be able to Samsung of recovery in the second half of the year, driven by sales of chips to data centers, and technology the fifth generation wireless, the launch of new tools including her smart phone cutting-edge folding of the long-awaited.

Samsung said that its operating profit amounted to 10.8 trillion won, or the equivalent of USD 9.7 million in the fourth quarter of 2018, in line with estimates earlier this month. Income fell by 10% to 59.3 trillion won, or the equivalent of 53.35 million USD.

Shares fell Samsung 0.2% after the company announced its financial results. This, after stocks lost 24% of its value over the past year amid investor fears of the impact of commercial exchange between the United States and China.

It is indicated that the electronic chips produced by Samsung running devices most companies in the smart phone industry, including Apple and pioneer in the Chinese market, Huawei. Include memory chips and processors about 72% of the total profits.

Samsung said it expected to remain the demand for memory is weak in the first quarter of 2019 before gradually from the second quarter supported sales for cloud computing. As data centers are one of the best places of the memory chip market due to the growing need for cloud services for the electronics industry and data analytics.

The company reported that operating profit for the last quarter of 2018 decreased by 29% to 7.8 trillion won. Scored section of mobile phones a profit of 1.5 trillion won, a net decrease of 38% from last year.

Samsung said it while the sales of smart phones are generally steady this year, the average prices will rise where they have been building more devices with such expensive cameras.

This intends Samsung release phones foldable devices support 5G during the current year, as will be disclosed series phones “Galaxy” Galaxy new in the next month, but did not specify a date for the launch of the device foldable.

It is indicated that the Korean giant is still struggling to defend the top ranking in the global smartphone market against rivals the Chinese, including Huawei, which said last week it could overtake Samsung this year.

The gate Arab News Technical Samsung announces the financial results are weak due to sluggish demand for memory chips

If you are watching what you read now, be aware that this content a user is illegally in this location, and the original position of the gate Arab News Technical

Leave a Reply

Your email address will not be published. Required fields are marked *