AfterDawn: Tech news

Samsung follows Apple with declining profits of its own

Written by Matti Vähäkainu (Google+) @ 08 Jan 2019 12:10

Samsung follows Apple with declining profits of its own Apple had to issue a rare warning about its forthcoming quarterly results due to weak sales of iPhones. It seems like tech giants are in same difficult waters as Samsung reports similar concerns.
According to Apple, the problems were originating from China where economic growth had softened which in turn affected iPhone's sales figures. The culprit might loosely be the same, ie. China, although Samsung's problem wasn't smartphone sales.

However, the Korean conglomerate expects a dramatic decline from previous year in both revenue and operating profit, Bloomberg reports.

Samsung expects late 2018 quarter to produce a revenue of 59 trillion won, down 11% from previous year. Even worse, operating income declined nearly 30 percent year-over-year to 10.8 trillion.

One major reason for Samsung's slowdown is reduced demand for memory chips. This is likely to some extent due to the troublesome trade relations between China and the United States.

Even though smartphone sales isn't the reason for such a dramatic decline for the company's bottom line, Samsung is losing ground to Chinese competitors, who are managing to produce competitive products at lower price points.

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