The world’s number one mobile phone reported Tuesday, Jan. 8, a sharp decline in profitability in the fourth quarter, citing “macroeconomic uncertainties” and a “market that stagnates and highly competitive.”
He slows down. The world’s number one mobile phone, South Korean Samsung Electronics, reported Tuesday, January 8, a sharp decline in profitability in the fourth quarter, citing “macroeconomic uncertainties” and a “market that stagnates and highly competitive” . The operating profit is expected to be between 10,700 and 10.9 trillion won (8.3 billion to 8.5 billion euros), 28 percent less than a year earlier, the group said in a statement. a “lower than expected demand”.
The figure is far from the 13.5 trillion won expected by consensus analysts, and established by the South Korean firm FnGuide. Sales for the quarter, for this group that also manufactures chips and screens, should also have fallen sharply, by 10% to 59,000 billion won (45.9 billion euros). The profit warning comes six days after its American rival Apple, which revised its earnings forecast for the first quarter of 2019, citing “the rise of trade tensions” between China and the United States.
“Difficult market situation”
Apple’s shares fell 9.96% in New York the next day, triggering a general downward movement in stock indexes. Until then, Samsung Electronics had been rather unaffected by the slowing global growth of the mobile phone market, aligning profit records. But competition from Chinese manufacturers, including world number two Huawei, has complicated the group’s business.
If Samsung Electronics expects a “difficult situation” in chips, it does not give prospects for mobile phones after a fourth quarter where volumes were “stable”. Detailed annual results, including net income, are expected later this month.