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Operating Profit of Samsung Plunges 29% in Q4 2018

Apple last week downgraded its sales forecast for the last three months of 2018, suggesting a drop in orders for Samsung, one of the major chip providers for iPhones

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Samsung files new patent application for 3D displays.

Samsung Electronics Co said on Tuesday its operating profit plunged 28.7 per cent in the fourth quarter compared with a year ago due to weak memory demand, falling far short of market expectations.

Operating profit came to 10.8 trillion won ($9.66 billion) in the October-December period, the South Korean tech behemoth said in a regulatory filing. This is down 38.5 per cent from 15.1 trillion won posted a quarter earlier, Yonhap news agency reported.

The operating profit was the lowest since the first quarter of 2017.

Sales fell 10.6 per cent on-year to 59 trillion won over the cited period, the company said.

The operating profit was far below market expectations of 13.6 trillion won, based on the survey conducted by Yonhap Infomax, the financial arm of Yonhap News Agency, on 23 South Korean brokerage houses.

Samsung did not announce the net profit for the fourth quarter, nor the performances of respective business divisions. The finalised earnings report will be announced later this month.

Samsung
The operating profit was the lowest since the first quarter of 2017.

For 2018, the company expected the operating profit and sales to reach 58.9 trillion won and 243.5 trillion won respectively on the back of strong demand for memory chips in the global market. The sales estimate is the record-high annual figure.

Samsung said demand for memory chips in the last three months of 2018 hovered far below the market expectation as major data centers adjusted their inventories, which drove down prices of DRAM products.

Sales of smartphones also slowed in the maturing market with promotion costs in the peak season cutting into its profitability, it noted.

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“Operating profits sharply decreased due to lacklustre demand in the memory division and intensifying competition in the smartphone sector,” Samsung Electronics said in a rare release for a preliminary earnings report.

The prices of DRAM, a type of memory used for the temporary storage in computer systems, sank 10 percent in the fourth quarter from the previous quarter due to weak demand for PCs, servers and smartphones, according to corporate tracker DRAMeXchange.

Apple last week downgraded its sales forecast for the last three months of 2018, suggesting a drop in orders for Samsung, one of the major chip providers for iPhones. (IANS)

Next Story

You Can Now Pre-Book New Samsung’s Foldable Smartphone “Galaxy Z Flip” in India

The device will be available in three colours -- Mirror Purple, Mirror Black and Mirror Gold

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Samsung
The Galaxy Z Flip has been engineered with a first-of-its-kind foldable glass that features a 6.7-inch display that folds into a stylish and compact form factor which fits in the palm of your hand. IANS

Samsung on Thursday announced the pre-booking for its new foldable smartphone Galaxy Z Flip in India from February 21 that will be available for those who pre-book the device at Rs 1,09,999 from February 26.

Galaxy Z Flip comes with accidental damage coverage, which includes one-time screen protection and a 24X7 dedicated call centre support, one-year Samsung care and protection, one-time screen damage protection service for inner screen and external screen at discounted fee (at the time of repair), up to 12 month interest-Free EMI in 10 cities and four-month free YouTube premium Subscription, said the company.

The Galaxy Z Flip has been engineered with a first-of-its-kind foldable glass that features a 6.7-inch display that folds into a stylish and compact form factor which fits in the palm of your hand. It’s a dual-SIM smartphone, with one eSIM and one Nano-SIM card slot. E-sim services are currently available on Airtel and Jio networks.

Consumers can pre-book Galaxy Z Flip on the Samsung e-shop and select retail stores starting February 21. Buyers from Samsung e-shop will be offered premium “white glove delivery”.

The device features Dynamic AMOLED Infinity Flex display as the main display. It is powered by a 7nm octa-core processor with 8GB RAM and 256GB internal storage. The device is backed by 3300mAh battery with fast-charging support via power cord and wireless PowerShare and runs Android 10.

“Last year, Samsung introduced the biggest breakthrough since the mobile phone, the Galaxy Fold. Galaxy Z Flip gives you all the advantages of a large screen in a stylish and compact form factor that fits in the palm of your hand,” said Aditya Babbar, Director, Mobile Business, Samsung India.

“Our specially designed foldable UX allows consumers to reimagine how they take selfies and discover hands free video chatting like never before,” he added.

Samsung
Samsung on Thursday announced the pre-booking for its new foldable smartphone Galaxy Z Flip in India from February 21 that will be available for thise who pre-book the device at Rs 1,09,999 from February 26. IANS

The device will be available in three colours — Mirror Purple, Mirror Black and Mirror Gold.

In terms of optics, the phone houses 12MP ultra-wide sensor and 12MP wide-angle camera at the rear. At the front, there is a punch-hole 10MP camera.

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Galaxy Z Flip folds into the size of a wallet, so you can easily fit it in your pocket or clutch bag. (IANS)