Samsung Electronics expects Q1 earnings to miss market forecasts

SEOUL: Samsung Electronics said on Tuesday that it expects its first quarter earnings to fall short of market expectations as declines in its memory chip prices have increased.

In a rare announcement ahead of its actual earnings guidance, Samsung pointed to weak chip demand and slowing demand from its display panels customers."The company expects the scope of price declines in main memory chip products to be larger than expected," Samsung said in a regulatory filing. The South Korean tech giant is expected to post its guidance for first quarter earnings early next month.

"Inventories piling up on its memory chip side and weak performance of its display panels business due to bad sales in Apple's iPhones bring worse profitability for Samsung," said Lee Won-sik, an analyst at Shinyoung Securities. Samsung is the world's biggest memory chip maker and also manufactures display panels for smartphones.Samsung did not elaborate on the purpose of its regulatory filing. A company official confirmed the company has not previously provided comment before its official earnings estimate.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Samsung Electronics sees tough 2019 for component business: CEOSamsung Electronics Co Ltd expects a tough year for its component business including memory chips due to sluggish growth in the smartphone market ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Wall Street Week Ahead: Doubts increase that first quarter will be earnings low pointNEW YORK: As Wall Street braces for what may be the first U.S. profit decline since 2016, investors say the first quarter may not mark the low ... Legal gambling
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Tencent Music hits low pitch after first earnings report exposes costsChinese streaming firm Tencent Music Entertainment Group delivered its first earnings report as a public company, meeting market expectations but ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Technology could ease pain of rising costs on F&B earningsRISING operational costs from more stringent foreign worker quotas will weigh on future earnings for Singapore's listed food & beverage companies, but technology could make the impact easier to digest. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »