Samsung: chip and smartphone divisions are not doing as well as hoped

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The chip and smartphone divisions are not doing as well as hoped, according to Samsung. As a result, turnover and profit over the past few months will be disappointing. The company thinks things will get better later on.

The disappointing turnover and profit is mainly due to a decreased demand for memory, CNBC reports based on information from Samsung. The company itself mentions estimates of turnover and profit in its public statement, but does not give any reasons for the decline. Samsung expects sales to be around 59 trillion Korean won, which is currently about 45.8 billion euros. That is 11 percent lower than a year ago. Unlike Apple, this is not a sales warning, which the company issued last week. Samsung has previously not expressed expectations in public.

The declining demand for dram and storage comes as a surprise to the company, as Samsung expected slight growth in both markets. Obviously it goes hand in hand with the same developments that Apple is dealing with. Due to the falling demand for iPhones, Samsung also receives less income; the South Korean company supplies, among other things, the screens for the iPhone XS and XS Max. Samsung is also supplier of the memory of some of the new iPhones, in addition to Micron.

Samsung expected growth in the sale of its own smartphones, partly due to new models such as the Galaxy A9 with four cameras on the back. Samsung made 36.5 percent of its revenue from smartphones in the previous quarter, about 37.8 percent came from the components market.

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