Samsung sees profits drop significantly due to less demand for chips
Posted by Maryam Yamin on January 31st, 2019
According to The Greater, Samsung saw a sharp drop in earnings in the fourth quarter, partly as a result of weaker demand for chips after years of strong growth. Consumers who kept their hands on the cut also had their influence. The turnover of the South Korean conglomerate showed a sharp decline.
The results are not unexpected; by preliminary figures some time ago it was already clear that the group had a tough period behind it. Under the dash, a quarterly profit of 8.3 trillion won, equivalent to around 6.5 billion euros. That is 31 per cent less than a year earlier. Operationally the result dropped to 10.8 trillion won, and the proceeds amounted to just over 59 trillion won.
It is the first time in more than two years that Samsung sees the profit fall. At the moment, the company was suffering from the fallacious failure of its fire-prone flagship Galaxy Note 7.
These aircraft were eventually all recalled after people had been injured in several incidents. But the period after that, a series of record wins was achieved, supported by the demand for memory chips.
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About the AuthorMaryam Yamin
Joined: October 25th, 2018
Articles Posted: 31
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