08. jan Samsung and LG warn of profit decline in fourth quarter as smartphone market stagnates

Samsung and LG warn of profit decline in fourth quarter as smartphone market stagnates

Tech News   |   01/08/2019 - 4:24pm   |   by   |   106

Turns out Apple is not the only company expecting to disappoint investors with its next set of quarterly results — Samsung and LG are in the same boat.

Whether or not it's for precisely the same reasons is unclear, but it seems a plateauing smartphone market is at least partially to blame for all three companies' guidance misses. 

In Samsung's case, the tech giant estimated its operating profit for the three months ended December was approximately 10.8 trillion Korean won (approximately $9.67 billion), which is roughly 29 percent down year-over-year and about 18 percent less than the 13.2 trillion won predicted by analysts. The corporation blamed the decline mainly on poor demand in its memory chip business, as well as heightened competition in the smartphone market. Samsung doesn't expect the memory business to pick up much in the next quarter (analysts believe data center customers like Amazon, Microsoft, and Google have enough memory for the time being), but the company hopes for improvements in the second half of the year.

Read more in the full article: Android Police

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