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South Korean Tech Giant Samsung Expects Weak Q1 Earnings Over Chip Prices

Samsung said earlier that it will propel technology innovations to tackle the unfavourable business environment and foster new growth drivers, such as Artificial Intelligence (AI) and 5G

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To get ahead in the fast-changing tech industry, Samsung said it will expand investment in burgeoning tech segments to propel growth. Wikimedia

Samsung Electronics Co said on Tuesday that it is expecting weaker-than-predicted business results for the first quarter due to a sharp decline in memory chip and panel prices.

The major smartphone maker is scheduled to release its preliminary first-quarter earnings early in April.

“Due to worse-than-expected business conditions, we expect January-March earnings to remain below the market expectations,” Samsung said in a regulatory filing, Yonhap news agency reported.

The world’s largest memory chipmaker said semi-conductors are expected to fall further by larger-than-expected margins due to weak demand, and prices of LCD panels are also struggling amid a supply glut.

Samsung Electronics traded at 45,250 Won on the Seoul bourse as of 11.12 a.m., down 0.55 per cent from the previous session’s close.

The earnings warning came amid weak chip demand from the smartphone market and the protracted trade war between the US and China.

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Galaxy S10 is the only smartphone that has a hole in OLED display itself. Pixabay

Although sharper-than-expected decline in chips may have dented the tech firm’s bottom line, analysts expect demand and chip prices to rebound in the second half of the year.

South Korean brokerage houses have sharply downgraded the first-quarter earnings forecasts for Samsung Electronics, citing tumbling memory chip prices.

The market consensus of Samsung’s operating profit for the first three months of the year stands at 8.33 trillion Won ($7.36 billion), down about 47 per cent from a year earlier, according to corporate tracker FnGuide.

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Analysts further painted a gloomy picture of Samsung’s earnings for the remaining quarters, saying their operating profits are unlikely to rise on-year.

Samsung said earlier that it will propel technology innovations to tackle the unfavourable business environment and foster new growth drivers, such as Artificial Intelligence (AI) and 5G. (IANS)

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South Korean Tech Giant Samsung Takes on Xiaomi, Sells 2 mn Galaxy A Phones

Samsung earlier announced that it would launch at least one phone every month from March to June this year

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Samsung India
DJ Koh, President and CEO of IT and Mobile Communications Division, Samsung Electronics. (IANS)

Taking on Chinese player Xiaomi big time, South Korean tech giant Samsung sold two million phones in its mid-price segment Galaxy A series in India in just 40 days starting March 1, earning a revenue of $500 million.

Samsung is targeting $4 billion in revenues from its Galaxy A series of phones this year.

Earlier this month, it announced Galaxy A20, its fourth smartphone in the Galaxy A series this year. Galaxy A20 is available in India at Rs 12,490.

In March, Samsung launched galaxy A10 at Rs 8,490, A 30 at Rs.16,990 and A50 in two variants – one at Rs 19,990 and the other at Rs 22,990.

“In the first 40 days starting March 1, we have sold a total of two million units of three Galaxy A models in India – A50, A30 and A10. The revenue turnover from these three phones in 40 days is $500 million,” Ranjivjit Singh, Chief Marketing Officer and Senior Vice President, Samsung India, told IANS on Monday.

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Arvin Baalu, vice president of product management at Harman International, talks about the Samsung Digital Cockpit during a Samsung news conference at the 2019 CES in Las Vegas, Jan. 7, 2019. VOA

“I think this a record for any brand in the industry,” Singh added.

“When the rest of the portfolio in A series becomes available, we are sure of not only achieving but exceeding our target,a the Samsung executive said, adding that the A series phones will continue to be available across the channels – both online and offline.

Samsung India is now gearing up to launch the Galaxy A70 smartphone with triple camera system next week and the Galaxy A80 with rotating camera in May.

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“We will launch the Galaxy A70 in India next week in Rs 25,000 to Rs 30,000 bracket and the Galaxy A80 in the Rs 45,000 to Rs 50,000 bracket in May,” Singh said.

Samsung earlier announced that it would launch at least one phone every month from March to June this year. (IANS)