Samsung Electronics’ witnessed a profit decline by 33 percent in Q4 2019. The Korean conglomerate endured a harsh year with a 56 percent decline in profits in Q3 2019 quarter.
Samsung Electronics predicted operating profits in the October to December period at 7.1 trillion won ($6.1 billion), down 34.2 percent year-on-year. Sales were forecast to be flat at 59 trillion won and for the full-year 2019, it predicted operating profits of 27.7 trillion won, down 52.9 percent, on sales down 5.8 percent to 229.5 trillion won.
Samsung currently holds the title of world’s largest Smartphone and chip-set manufacturer, but experienced major setbacks in 2019. The bloating of chipset stockpiles, and decrease in chipset prices was a major blow to the company.
While comparing it to 2018, the chip set market was booming and a lot of revenue was made. Since the consumers now wait longer before upgrading to newer models, the smartphone market has gotten more fiercely competitive. During the the first three quarters of 2019, the Company’s net profits fell by more than half, but the Q4 profits fared better than expected due to a slight improvement in chip set demand.
Samsung will gain more profits in 2020 with their DRAM and NAND memory markets expected to rise. Additionally, 5G network availability will also impact sales growth as more and more networks make 5G available to consumers.
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03 April, 2020