Samsung had a very bad year 2018 in terms of sales, and this in the situation where the phone models launched by Koreans were not really that appreciated by customers. For 2019 it is hoped that the launch Samsung GALAXY S10 to solve this problem, and the CEO of the group, Kim Ki-nam, announces that things will not be very good, but not necessarily for his company, but for the other smartphone manufacturers around the world.
Samsung it is expected that the sales of components for smartphones will decrease significantly during 2019 because the sales of phones will be much lower than the Korean partners expected. The CEO of the Samsung group is not sure that his company will be affected, but his phones are produced with components bought from other divisions in the group, so it is possible that there is preparation for such a situation in 2019.
Samsung Announces BAD Sales for 2019 as well
Samsung it is expected that the sales of memory chips will be mainly affected because if the sales of smartphones decrease, the manufacturers will not buy as many components as in the past years. It is not known how much the sales for those from Samsung would decrease due to the decrease in interest in smartphones, but it is possible to talk about hundreds of millions, or even billions of dollars, which is a very big problem.
The upbeat outlook for mobile devices in China contrasts with the company's more pessimistic take on 2019, with trade tensions, weak economic growth and softer demand for memory chips expected to weigh on operations. We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts.
Samsung expects smartphone component sales to decline in 2019, but is also investing in improving its manufacturing processes to deliver even better components in the coming years. Even if the sales of smartphones will decrease in 2019, those from Samsung expect that in the following years they will begin to grow thanks to the new, more powerful components that will be integrated into the phones that will arrive in stores.
Samsung launches a rather harsh warning for investors who expect a very good evolution of the company in 2019, but the entire smartphone market is suffering, not just one company.