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Memory price avalanche: big brother of industry has suffered!
For Samsung, earnings in the first quarter of this year are not very optimistic, mainly due to lower memory prices, which had a big impact on them.
Samsung Electronics released company's financial report for second quarter ended March 31, 2019. The financial report shows that consolidated sales in first quarter were 52.39 trillion won (304.4 billion yuan), Samsung Electronics net profit in first quarter was 5.11 trillion won (29.7 billion yuan), while market expected 5.72 trillion won. year on year decline of 56.9%. Samsung Electronics posted operating income of 6.23 trillion won in second quarter, down 60% from last year.
Samsung said it expects overall memory chip market to be weak in second quarter and prices are likely to continue current decline despite improved demand. Demand for high-density chips is expected to continue to rise in second half of year, but uncertainty remains. The demand for flexible screens will grow with release of new smartphones, so display market is expected to continue to grow.
In addition, in financial report, Samsung also indicated that its own smartphone sales will increase in second half of this year, and demand for flexible screens will increase with launch of new smartphone products, so exhibition business is expected to develop further.
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