\tSamsung Electronics predicted its Q2 operating profit would plunge and sales decline again, due to weak memory chip and smartphone demand.<\/p>\n
In earnings guidance issued today (5 July), the South Korean vendor estimated operating profit would be down 56 per cent year-on-year to KRW6.5 trillion ($5.5 billion) and sales 4.3 per cent lower at KRW56 trillion.<\/p>\n
The estimates, submitted in a regulatory filing, include a one-time gain related to its display business.<\/p>\n
Samsung doesn\u2019t break out revenue or operating profit for each business division in the quarterly guidance. It is expected to release detailed earnings later this month.<\/p>\n
An oversupply of DRAM and NAND flash chips, made worse by a sharp drop in purchases by major customer Huawei, is expected to continue for the rest of 2019. Memory chips account for about a third of Samsung\u2019s total sales.<\/p>\n
Research company TrendForce predicts DRAM prices will decline by 10 per cent to 15 per cent in Q3.<\/p>\n
Last month, the outfit said global smartphone demand weakened even more than originally predicted due to escalating geo-political risks. It warned its 2019 shipments prediction of 1.4 billion units, which would already be down by between 5 per cent and 7 per cent, could prove conservative.<\/p>\n
Samsung suffered a dismal Q1 [1], with net income dropping 56 per cent year-on-year to KRW5.11 trillion and revenue down 13.5 per cent to KRW52.4 trillion.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/devices\/news-devices\/samsung-suffers-as-smartphones-struggle\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Samsung Electronics predicted its Q2 operating profit would plunge and sales decline again, due to …<\/p>\n
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