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Samsung says profit slid 60 percent year on year

Samsung says profit slid 60 percent year on year


Smartphone and memory demand likely to remain sluggish

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Photo by Amelia Holowaty Krales / The Verge

Samsung Electronics’ first-quarter operating profit slid around 60 percent year-on-year off revenue that declined by about 14 percent, according to preliminary guidance, further illustrating the company’s struggle with falling chip prices. The company had already issued an unprecedented warning last week that its earnings would be lower than market expectations.

Total sales are expected to come in at 52 trillion won ($45.7 billion), with operating profit of around 6.2 trillion won ($5.5 billion), according to a statement. Samsung provides these figures alone at the start of each quarter, issuing a more detailed breakdown later in the month.

Last quarter Samsung said that the Galaxy S10 was expected to help “prop up” performance, although it was only available for a few weeks of this three-month period. The company has said that it expects smartphone sales to be essentially flat throughout 2019, which affects its ability to sell components like OLED screens as well as its own Galaxy phones. Demand at its lucrative memory business, meanwhile, isn’t likely to pick up until the second half of the year.