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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

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

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.

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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Apple Users are Replacing iPhones with Samsung: Report

People who chose Samsung repeatedly were in bigger numbers

Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Less and less Apple users are sticking with iPhones when it comes to replacement and are switching to Android phones, especially Samsung, a new report by BankMyCell has said.

The iPhone trade-in site has been collecting data on the new device people have during the valuation and trade-in of their old iPhone. It essentially lets users sell their used phone and upgrade to a new one.

BankMyCell found that 18.1 per cent of iPhone users were trading in their device for a Samsung device in June, the highest level since it’s been in the study, according to a CNET report on Thursday.

samsung foldable phone
FILE – The Samsung Galaxy Fold phone is shown on a screen at Samsung Electronics Co. Ltd.’s Unpacked event in San Francisco, Feb. 20, 2019. VOA

The site collected data from over 38,000 people trading in their phones since October through 2019 to track Apple brand loyalty during the upgrade cycle.

People who chose Samsung repeatedly were in bigger numbers.

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Just 7.7 per cent of Galaxy S9 users switched over to an iPhone and 92.3 per cent remained on the Android operating system (OS). In comparison, 26 per cent of people trading in their iPhone X are moving onto another brand, the report added. (IANS)