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Bloomberg
Samsung Electronics Co reported its worst operating-profit drop in more than four years, buffeted by falling memory-chip prices and slowing smartphone sales.
Operating income fell 60 percent to about 6.2 trillion won ($5.5 billion) in the three months ended in March, according to preliminary results released from the Suwon, South Korea-based company. That was the biggest decline since a similar drop in the third quarter of 2014. Analysts surveyed by Bloomberg had expected a 56 percent slump to an average of 6.93 trillion won.
Samsung issued a rare warning last month that its results would be short of estimates, reflecting slower orders from data centre owners such as Amazon.com Inc and handset makers including Apple Inc. That’s pushed down prices for both DRAM and NAND memory and compounded the struggles for the South Korean company as it counts on new devices such as the Galaxy S10 smartphone to help it fight back against increased competition.