The South Korean tech giant said first-quarter operating profit likely slid 60% from a year earlier, missing market expectations and putting it on track for its weakest quarterly profit since late 2016.
SEOUL - Samsung Electronics Co Ltd said on Friday it was heading for its lowest quarterly profit in more than two years as a glut in memory chips, slowing panel sales and rising competition in smartphones hit margins.
“In the second half, memory chip prices will have a soft landing, so falls will slow, and the release of new iPhones later seems like a good sign for Samsung’s display and memory chips,” said Kim Yang-jae, an analyst at KTB Investment and Securities. Samsung’s premium Galaxy smartphones meanwhile are struggling to be profitable due to rising costs of innovation, competition from Chinese rivals and the reluctance of consumers to upgrade, analysts have said.Samsung’s share price has leapt more than 25% since sinking to a two-year low in early January as some investors bet on a recovery in chip demand.
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