Samsung Q4 2022 profit declines by 29 percent due to weak demand

Last updated: Jan 31st, 2019 at 07:10 UTC+01:00

The Korean conglomerate reported its earnings result for the previous quarter today. Samsung Q4 2018 turn a profit has declined by 29 pct compared to the same period last twelvemonth. The company says that it's due to weak need for its retentiveness products and more than headwinds for its mobile and display business.

Overall, the results are in line with the earnings guidance that Samsung released earlier this calendar month. That's almost ever the case. Samsung's overall revenue for the entire quarter did come a flake on the higher side than expected

Samsung Q4 2018 profit hit past multiple factors

Samsung declared 59.27 trillion won ($53.3 billion) in consolidated quarterly revenue for Q4 2018, download ten per centum from Q4 2017. It reported an operating turn a profit of 10.8 trillion won ($nine.seven billion), down 29 pct. Samsung made 243.77 trillion ($219 billion) in revenue for the entire year with 58.89 trillion won ($52.9 billion) in operating profit. It points out that this marked the second straight year of setting record fiscal results despite the challenges in the final quarter.

The company says that its fourth quarter earnings were afflicted past lower demand for retentiveness chips. This particular segmentation has long been a cash cow for the company and the slowdown in sales is certainly hit the lesser line hard. Samsung'south display business also saw increased competition much like the mobile partition which also saw prices falling in Q4. The consumer electronics partitioning reported higher earnings on the back of strong premium TV sales.

Samsung is warning investors that things won't await up any time presently. It expects demand for its memory products to remain weak in the starting time quarter. It also expects profitability for OLED panels to decline as premium smartphone sales contract and competition from LTPS LCD products rise.

Big scale chapters expansions in the industry will too limit its LCD earnings. However, Samsung does expect improved earnings from the mobile business organization in the starting time quarter due to the new product launches. Nevertheless, it expects overall annual earnings to decline in 2019, fifty-fifty while predicting that need for memory fries and OLED panels will improve in the second half.

Source: https://www.sammobile.com/2019/01/31/samsung-q4-2018-profit-declines-29-percent

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