Samsung to miss market expectations in Q1 2019
As the first quarter of 2019 draws to an end Samsung delivered a warning to investors about lower-than-expected demand for chip sales and display panels. The component market is in a steady decline and Korean sources claim that instead of the earlier estimated KRW7.981 trillion, profit will be under KRW7 trillion, which is half the KRW15.6 trillion profit from twelve months ago.
The display and chip market accounts for over 3/4 of the total revenue for Samsung Electronics. Competitors are providing better prices for LTPS LCDs, pushing manufacturers to ditch the OLED solution. The memory market that sent profits skyrocketing in the past two years might be performing poorly, but insiders expect the demand to recover in the second half of 2019.
The poor performance of Samsung Electronics is also hurting the South Korean economy. Export is on a downward trend due to the sluggish semiconductor demand, therefore partners are kept on their toes and investments are lowered as an answer. Official guidance is usually issued in the first week following the quarter, while the detailed results are posted in the last Friday of the month, following the three-month period.
(in Korean)