Samsung Expects Revenue Decline By 60% For First Quarter – Market News Store

Samsung Expects Revenue Decline By 60% For First Quarter

Samsung Electronics’ shares dropped by 0.21% after it revealed its first-quarter revenues would possibly come down to more than half that is almost 60 percent compared to the last year’s quarter owing to its week memory and display business.

Last week, the South Korean leading tech-based organization stated its expected operational turnover for the first quarter of the current year would be nearly $5.5 Billion, a steep decline from $13.87 Billion seen in the previous year’s quarter. Not only this, the expected revenue figure by the company has missed analysts’ estimations.

Even after such low revenue expectations, the stock market remained comparatively neutral as if investors were already anticipating the significant revenue drop for the first quarter of the current year, following such notification released by Samsung during the end of the quarter.

According to experts, a significant decrease in demand for Samsung-manufactured memory chips was seen due to the business slowdown of the data center companies, as well as the plunge in sales of its flagship smartphones. However, the company is not the only one facing this issue, the whole semiconductor sector is experiencing a period of inventory modification.

Analysts are strongly expecting that memory chip demand specifically from data centers will possibly improve in the second half of the year.

Apart from the memory chip business, Samsung had to decrease the LCD panel prices due to the extensive competition from the Chinese manufacturers. Whereas, the demand for OLED screens used in superior smartphones also declined largely.

The business of the globally largest smartphone manufacturer is not expected to drag down in the recently ended quarter; the final quarter of the last year also followed the same scenario. The annual revenue for the quarter was declined by more than 28%.

Samsung has recently rolled out its first ever 5G smartphone in South Korea, which are quite expensive ranging from $1,231 to $1,366 based on the model type.

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