On July 5th, South Korea's Samsung Electronics Co., Ltd.
officially released its second quarter 2019 outlook.
Samsung said that due
to the continued weakness in the price and demand of memory chips, the
company's second-quarter profit will be reduced by more than half (56%)
compared with the same period last year.
As the world's largest smartphone manufacturer and storage chip
supplier, Samsung's main profitable business is storage components for mobile
(handheld) devices and enterprise servers, but due to the industry downturn,
the company's performance for the second quarter Expectations are
reduced.
Samsung said it expects operating profit for the second quarter
to be 6.5 trillion won ($5.5 billion), slightly higher than the industries
estimated 6 trillion won, but down about 56% from the same period last year.
In addition, some experts said that the entire semiconductor
industry is undergoing an inventory adjustment period, resulting in reduced
demand and oversupply.
Some experts also predict that the inventory of
DRAM and NAND memory chips will continue to be excessive, which will delay the
recovery of the industry until the second half of 2020.
Samsung currently said that the exact data for the second
quarter will be released later this month.
If these figures are in line
with Friday's public performance outlook, this will be Samsung's second
consecutive quarter of operating profit reduction of more than half over the
same period last year.
It is reported that Samsung’s profit for the first
quarter of this year fell by about 60% year-on-year to 6.2 trillion won ($5.3
billion).
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