Samsung quarterly operating profit fell on slower demand

In this Wednesday, Jan. 30, 2019, photo, a visitor passes by Samsung Electronic' booth during an industrial fair in Seoul, South Korea. South Korean technology giant Samsung posted on Thursday, Jan. 31, 2019, a near-30 percent drop in operating profit for the last quarter after seeing slowing global demand for its memory chips and smartphones. (AP Photo/Ahn Young-joon)
In this Wednesday, Jan. 30, 2019, photo, visitors try out Samsung Electronics' Galaxy Note9 smartphones during an industrial fair in Seoul, South Korea. South Korean technology giant Samsung posted on Thursday, Jan. 31, 2019, a near-30 percent drop in operating profit for the last quarter after seeing slowing global demand for its memory chips and smartphones. (AP Photo/Ahn Young-joon)
In this Wednesday, Jan. 30, 2019, photo, visitors enter Samsung Electronics' booth during an industrial fair in Seoul, South Korea. South Korean technology giant Samsung posted on Thursday, Jan. 31, 2019, a near-30 percent drop in operating profit for the last quarter after seeing slowing global demand for its memory chips and smartphones. (AP Photo/Ahn Young-joon)

SEOUL, South Korea — Samsung Electronics Co. has posted a near-30 percent drop in operating profit for the last quarter after seeing slowing global demand for its memory chips and smartphones. It still finished the year with record highs, but expects a decline in earnings this year.

The South Korean technology giant on Thursday said its operating profit during the October-December quarter declined 28.7 percent at an annual pace to 10.8 trillion won ($9.7 billion). Sales fell by more than 10 percent to reach 59.3 trillion won ($53.3 billion), while net income fell 31 percent to reach 8.5 trillion won ($7.6 billion).

Samsung, which has dual strength in parts and finished products, said demand for its memory chips decreased due to "mounting external uncertainties" and inventory adjustments at major customers, including data center operators and smartphone manufacturers. Samsung said sales of its Galaxy smartphone also weakened amid a stagnant global market.

For the whole year of 2018, Samsung posted an operating profit of 59 trillion won ($53 billion) on revenue of 244 trillion won ($219 billion), which were both record highs.

Samsung said it expects its overall annual earnings to decline this year because of the sluggish semiconductor market, although it sees its sales of memory chips and organic light-emitting diode panels used in mobile devices rebounding in the second half. The company also hopes the planned release of the new Galaxy S10 smartphone this year will boost its mobile devices business.

Other News

Australia moving 2,000 people from powerful cyclone's path

Mar 21, 2019

About 2,000 Australians are being moved inland from part of the northern coast ahead of a powerful cyclone expected to hit this weekend

Australia could jail social media execs for showing violence

Apr 4, 2019

Australia's Parliament has passed legislation that could imprison social media executives if their platforms stream real violence such as the New Zealand mosque shootings

China's launch of quantum satellite major step in space race

Aug 16, 2016

Experts say China's launch of the first quantum satellite will push forward the worldwide effort to develop the ability to send communications that can't be penetrated by hackers

Search
Broaden

Scienfinite is created to inspire our readers with the aim to understand the world and appreciate its everyday awe. Keep up with the technology and latest innovations here, only in Scienfinite.

Contact us: sales@scienfinite.com