Samsung is expected to report a dramatic 60 per cent year-on-year drop in profits for its first quarter as dwindling smartphone sales deteriorated demand for its memory chips.
This morning the South Korean tech giant warned that its operating profit for the first three months of 2019 was likely to come in at 6.2 trillion Won (£4.1 billion), missing analyst estimates of 6.8 trillion won (£4.5 billion) and significantly below the 15.64 trillion Won (£10.5 billion) it made in the same quarter of 2018.
This comes ahead of Samsung’s full earnings report later this month, and follows a regulatory filing in March which warned that seasonal weakness in demand would hinder sales of its memory chips, which make up the core chunk of its profits.
Its consolidated sales are also expected to drop 14 per cent in the first quarter to 52 trillion Won (£34 billion) also missing market expectations, and marks the second consecutive quarter of falling sales following a 28 per cent decline in the final quarter of 2018.
Today also saw the roll out of the world’s largest smartphone maker’s Galaxy S10 5G in its home market, where 5G is already live.
The adoption of its new model is expected to be a relatively subdued, due to its high price point retailing for around the £1000, and the fairly limited availability of 5G.