Samsung warns of Q4 profit drop, blames unexpectedly low semiconductor demand

TechCrunch | 1/7/2019 | Staff
bab_ohhbab_ohh (Posted by) Level 3
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Apple isn’t the only smartphone maker steeling itself (and analysts) for disappointing results. Samsung Electronics issued earnings guidance for the final quarter of 2018 today that not only marks its first quarterly profit decline in two years, but also fell far below analysts’ expectations. The company attributed the drop to lower-than-expected demand for its memory chips, which in previous quarters had helped bolster its earnings even when its smartphone business was lackluster.

Samsung Electronics said it expects consolidated operating profit of about 10.8 trillion won ($9.67 billion), a 28.7 percent drop from the 15.15 trillion won it recorded in the same period a year ago, and below the 13.2 trillion won that analysts polled by Thomson Reuters had predicted. Consolidated sales are expected to be about 59 trillion won, a 10.6 percent decrease from 65.98 trillion won a year ago ($52.9 billion). Analysts had estimated sales of 62.8 trillion won.

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