The Technology giant Samsung is expected in the current year decline in profits. Reasons for this include a declining demand for Smartphones and memory chips, as well as increased competition in the industry.
In the fourth quarter of 2018, the Surplus of South Korea, broke niche technology company in the year-on-year by 31 percent to 8.46 trillion Won ($6.6 billion), Samsung. In sales, Samsung recorded in the last quarter of 2018, a decline of ten percent to 46.3 billion euros.
However, Samsung achieved a total year 2018 a net profit in record an amount equivalent to 34,6 billion Euro, goes back to about three-quarters to the semiconductor business. The revenues in 2018 on the all-time high of 190,4 billion euros. Samsung also leads the market in memory chips and TVs.
Weaker-storage business, expected
“For 2019, the company expects that the result for the year decreased due to a weaker memory business,” it said in a Company statement. The demand for memory chips is likely to remain in the first quarter of this year, more weak. Also “macroeconomic uncertainties”, as well as a reduction in inventories at customers except seasonal factors.
The demand for memory chips will, however, likely to attract in the second half of the year by orders from data centers and in connection with the 5G Development. Also, the business with organic light emitting diode Displays (OLED) is expected to grow.
Samsung hopes the Galaxy S10
In the division of IT and mobile communication, the Apple rival, despite a decline in sales of Smartphones, a yield improvement. The South Koreans put their hope, among other things, to the introduction of the new top model Galaxy S10, to be presented in February, and the Start of the commercial 5G service in South Korea. The new mobile radio standard brings higher data rates.
The experts of IDC expect that the difficult market conditions in the first quarter of 2019. Thus “the likelihood of a decline in the market in this year will always be more reality”.
competition from China takes to
In the last quarter of providers had delivered a total of 375.4 million Smartphones, a decrease of 4.9 percent compared to the previous year and a decrease for the fifth quarter in a row.
Generally, market experts estimate that Apple has sold in the Christmas business between 66 and nearly 72 million Smartphones. The estimates for Samsung are a good 70 million. Both companies get more competition from China.
recently, Samsung Manager Mario Winter had shown himself confident for the Smartphone division, mainly in the business with Premium devices, the waxes still in the double digits, said Winter. A challenge will it be for the manufacturers, their products from those of competitors.