Samsung Profits Plummet Unexpectedly:This is Why

Samsung announced that its fourth-quarter operating profit will plummet by 30% from last year.This is because of a drop in memory chips sales and intensifying competition from rivals such as Oppo,Nokia and Huawei.

The tech giant blamed the predicted loss on “mounting” macroeconomic uncertainties unlike Apple who blamed their losses on the America-China trade war.China, the world’s largest smartphone market is experiencing a deepening economic slowdown that’s affecting businesses around the world.

 Samsung supplies key parts like chips and display screens to other major device manufacturers. Apple’s latest iPhones use Samsung’s OLED screens while Huawei uses their memory chips.
The South Korean company said it expects operating profit for the fourth quarter of 2018 to come in at $9.6 billion compared to $13.5 billion it made in the same period last. It has predicted that sales will drop by 11% to $52.5 billion.Samsung will report full fourth-quarter results at the end of this month.

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