Samsung operating profit slump expected by the companyThere is a drop which is expected by Samsung Electronics in the operating profit for fourth quarter for the year 2019 and that has been affected by the continuous slump in the sales of semiconductor that have clouded the earnings performance of the company. The drop is said to be 34%
The largest makers of smartphones and memory-chip have said that they are anticipating an operating profit of $6.1 billion (7.1 trillion won) in 2019’s last three months which is down from the earlier figure that was much higher. The company is expecting the revenue at being flat roughly from one year ago where it was 59 trillion won
This guidance has topped the estimates of the analysts which had made a forecast of the operating profits being at 6.5 trillion. The full earnings report of the company is going to be out later in the month.
The results are being watched with great interest as it is playing a dual role in the makers of hardware and a big supplier of components of the electronics companies including to their rivals like Apple Inc. which is buying the chips and displays from Suwon which is a company based in South Korea.
In future, Samsung has been expected to be getting a boost from the 5G network which is going to be rolled out across the world in the year 2020 say the industry analysts. In the year 2019, the company had shipped more than 6.7 million Galaxy smartphones which have 5G.
Most of these sales though had been in the home country, South Korea where there were mixed reviews of the 5G and the carriers have been giving discounts to the subscribers.