Samsung following Apple said they had poor financial performance

Samsung warned investors that profit for the fourth quarter of 2018 will fall sharply. The reason — poor sales of components and smartphones.

Samsung following Apple said they had poor financial performance

The company expects that the sales volume will decrease by 11% compared to the same period in 2017. Operating profit decreased 29% to 9.6 billion dollars.

The forecast shocked investors and analysts. Usually, Samsung explains the results of the fiscal quarter after the publication of the statements.

Samsung identifies two factors that influenced poor financial results: weak demand on the memory market and increased competition from other smartphone manufacturers. The company spent a lot of money on advertising in the conditions of strong seasonality and weak sales of smartphones.

Samsung expects first quarter of 2019, the profit will continue to decline due to continued weak demand for memory modules. But in the second half of 2019, the situation will improve. The manufacturer expects that foldable smartphones and the introduction of 5G will help to improve the performance of mobile units.

In early January, Apple published a similar statement. Both companies suffer from the low demand for smartphones, but only Apple blames China, although Samsung is also faced stiff competition in this market from Huawei and Xiaomi.

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