Samsung Forecast 29% Q4 Profit Drop
Amidst the whirlwind of CES 2019, Samsung Electronics has informed investors it’s forecasting a 29% drop in Q4 operating profit – a figure well below market estimates.
The Korean giant has also warned against “subdued” Q1 profit, citing a difficult chip market.
Samsung expects the chip market to rebound in the second half of the year, jump-start by new smartphone releases.
The news comes as global tech stocks continue to fluctuate, with Apple slashing its sales forecast amid a competitive market and lower Chinese demand.
Shares in Apple have slumped to their lowest levels since April 2017.
Commentators attribute strained trade relations between the United States and China for a decline in consume electronics demand.
Samsung – the world’s biggest smartphone and semiconductor manufacturer – still counts companies [and rivals] such as Huawei and Apple as customers.
According to Reuters, Samsung’s memory and processor chip business accounts for over three quarters of overall profit, and ~38% of sales.
For the period October to December, Samsung Electronics forecasts an operating profit of 10.8 trillion won (US$9.67 billion), significantly below analyst expectations for 13.2 trillion won.
The tech giant is also forecasting an 11% dip in revenue to 59 trillion won.