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Home / Business / Samsung Electronics sees the lowest quarterly result of more than two years by Reuters

Samsung Electronics sees the lowest quarterly result of more than two years by Reuters



FILE PHOTO: Participants at Samsung Electronics Co., Ltd. are Unpacked Event Testing out the Company's New Devices in San Francisco

By Ju-min Park and Heekyong Yang

SEOUL (Reuters) – Samsung Electronics (KS 🙂 Co Ltd said on Friday It was on its way to its lowest quarterly surplus of more than two years as a glut in memory chips, lowering panel sales and increasing competition in smart phones.

The South Korean technology giant said operating profit in the first quarter probably hit 60 percent from a year earlier, missing market expectations and heading it for its weakest quarterly results since the end of 201

6.

Shares in Samsung rose shortly before mating gains to trade flat after the guidance, as many investors are already looking forward to earnings Reversal backward Improvement of chip prices in the second half of the year.

Samsung supplies memory chips and monitors for its own smartphones and Apple Inc (NASDAQ :), and server chips for cloud co Machines like Amazon (NASDAQ :). Its semiconductor business is the main window.

"In the second half, memory card prices will get a soft landing, so the falls will slow, and the release of new iPhones later seems to be a good sign of Samsung's display and memory chips," said Kim Yang-jae, an analyst at KTB Investment. and Securities.

The world's largest manufacturer of smartphones and memory card chips said in a filing January-March, the profits were likely to win 6.2 trillion ($ 5.5 billion), missing 6.8 billion won estimates from analysts according to Refinitive SmartEstimate.

Income probably fell 14 percent from the previous year to 52 trillion won. The company will reveal detailed earnings at the end of April.

Samsung's shares were flat from 0120 GMT, while the broader market increased by 0.2 percent.

The company had previously warned the quarter might be disappointing due to fall in memory prices, and slow demand for display panels used in Apple's iPhones.

Samsung's premium Galaxy smartphones are struggling in the meantime to be profitable because of the rising cost of innovation, competition from Chinese rivals and the reluctance of consumers to upgrade, analysts have said.

HIT BOTTOM

Samsung's stock price has jumped more than 25 percent since lowering to a two-year low in early January, as some investors are striving for a recovery in chip demand.

SK Hynix Inc, Micron Technology Inc (NASDAQ 🙂 and Samsung – which dominate the global dynamic random access memory market, or DRAM, chips used in personal computers, smartphones, and servers – have recently provided good reviews of the prospects for a chip price recovery.

Hope was raised further as data showed that the industry sector in China, the world's largest smartphone market, unexpectedly returned to growth for the first time in four months in March.

Samsung is investing in a new series of smartphones, including a collapsible handset and a 5G-enabled model, will help increase its market share in China, which crashed with the advent of cheaper Chinese rivals such as Huawei Technologies Co Ltd.

But the latest phones are expensive to make, weighing profitability Although it sells faster than its predecessor, analysts say.

"New smartphones coming out in the second half won't necessarily help their smartphone business, but will be a plus for Samsung's chipside since these phones require high density chip adoptions," said Park Sung-soon, an analyst at BNK Securities. 19659021]! The function (f, b, e, v, n, t, r)
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