Samsung. A huge problem was officially announced during this day by the Korean company, but we are talking about something that was predicted many weeks ago, and which is only now coming true. More specifically, the Samsung company announced last night that the group's operating profit for Q1 2019 fell by no less than 60% compared to the same period last year, one of the biggest declines in its entire history.
Samsung. Including the company's receipts fell by 14% in the same fiscal quarter compared to Q1 2018, the information being provided in a preliminary manner by the Koreans before officially announcing the financial results for Q1 2019. Samsung had already announced last week that the receipts and profit for Q1 2019 they will be lower than those recorded in Q1 2018, and now they officially confirm this, and the details will come in the following weeks.
Samsung. HUGE PROBLEM Officially announced today
Samsung. The total receipts of the group totaled 45.7 billion dollars, the operating profit being 5.5 billion dollars, so we are still talking about a company that still works well. The biggest problems for the Samsung company were with the sale of OLED screens, and here it is the fault of those from Apple, because their iPhone sales decreased a bit, but the division that produces chips for mobile terminals did not fare well either better.
Samsung Electronics' first-quarter operating profit slid around 60 percent year-on-year off revenue that declined by about 14 percent, according to preliminary guidance, further illustrating the company's struggle with falling chip prices. The company had already issued an unprecedented warning last week that its earnings would be lower than market expectations.
Samsung. However, the Koreans expect that in the second part of the year, sales for chips dedicated to mobile terminals will increase, but also for the screens that will end up in them, as happens almost every year. Until then, Samsung is going through a more difficult period, as it happens in the case of Apple, and when one of the companies suffers, it seems that both suffer, but they are not the only ones in this situation now.
Samsung. What we see with the Koreans is a preamble for what we will see with Apple in just a few weeks, when it will also announce financial results below expectations.
