The warning on Samsung's results shows the impact of the slowdown in iPhone sales



The company expects earnings for the first quarter of 2019 to be below expectations due to falling chip prices and slowing demand for chips and billboards. "The company expects that the magnitude of the price drops in the major components of the RAM is greater than expected," writes Samsung in the regulatory filing. According to DRAMeXchange, DRAM chip prices dropped by more than 20 percent in the first quarter of the year.

In other words, society is feeling the effects of the economic sluggishness and weakening of smartphone sales around the world. For example, Samsung is providing OLED panels for Apple's new iPhones, so slow iPhone sales would also impact the performance of the Korean company. The forecast echoes the tech giant's warning when publishing its fourth quarter results of 2018. At the time, Samsung had said expect a deterioration in earnings for 2019 due to a lower memory demand, which partly explains why it is investing in new categories such as folding phones. It is quite possible that the technology giant will experience more experimental experiences as he tries to find the right formula to remain profitable in the future.

according to Reuters, the firm of Refinitiv SmartEstimate financial analysts, puts Samsung's operating profit from January to March at 7.2 billion won ($ 6.4 billion). This is less than half of the 15.6 trillion won ($ 13.8 billion) made by the company during the same period last year. The company also expects its sales to fall from 60.6 billion won ($ 53.5 billion) a year ago to 53.7 billion won ($ 47.5 billion). We will have more official details when Samsung publishes its directives next week.


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