Samsung’s Q1 profit drops 60% from 2018

  • The tech giant expected overall sales to have fallen 14.1% on-year to 52 trillion won in the three-month period
  • Earnings from memory chip sales accounted for over 70% of the total last year

Amid falling memory chip prices and weak demand for display panels, Samsung Electronics Co. on Friday said its operating earnings went down by more than 60% in the first quarter from a year earlier.

The operating profit was estimated at 6.2 trillion won ($5.45 billion) in the January-March period, a 60.4% drop from a year ago, Yonhap news agency reported citing earnings guidance.

The tech giant expected overall sales to have fallen 14.1% on-year to 52 trillion won in the three-month period.

Samsung did not break down the performances of its respective business divisions, saying it will announce detailed earnings later this month.

The operating profit margin of the company stood at 11.9%, the lowest since the third quarter of 2016.

Earnings from memory chip sales accounted for over 70% of the total last year.

Market watchers expected downbeat earnings from its semiconductor business and losses in the display panel division for the first time since 2016.

The IT and mobile business were expected to have posted robust earnings on the back of the Galaxy S10, which went on sale last month.

The flagship phone’s 5G model was launched in South Korea earlier in the day, targeting the premium segment.

Via Livemint

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