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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 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.

samsung
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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Samsung Display Plans To Invest $500mn in India To Set Up Manufacturing Unit

In India, Samsung Electronics has been in a fierce competition with Chinese rivals

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Samsung Display
Industry insiders said new Samsung Display plant would help its parent company secure smartphone display panels at cheap prices and boost productivity. Pixabay

Samsung Display, South Korea’s major display panel maker and an affiliate of Samsung Electronics, plans to invest $500 million in India to set up a manufacturing unit.

According to US tech media outlet TechCrunch, Samsung Display filed an investment plan with India’s regulator earlier this month, saying the plant in Noida, near New Delhi, would produce smartphone displays

Samsung Display officials in South Korea confirmed that the company was preparing to set up a plant there, but declined to comment on the scale of investment, Yonhap news agency reported on Monday.

Last year, the company set up its India arm Samsung Display Noida Private Ltd.

In 2018, Samsung Electronics opened a smartphone manufacturing plant in Noida to expand presence in the world’s second-largest mobile phone market, after China.

Samsung
Samsung Display, South Korea’s major display panel maker and an affiliate of Samsung Electronics, plans to invest $500 million in India to set up a manufacturing unit. Wikimedia Commons

Industry insiders said Samsung Displays’ new plant would help its parent company secure smartphone display panels at cheap prices and boost productivity.

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In India, Samsung Electronics has been in a fierce competition with Chinese rivals. According to data from market researcher Counterpoint, Samsung Electronics is the second-largest smartphone vendor behind China’s Xiaomi Corp in India. (IANS)