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You are here: Home / Samsung to draw line under lackluster 2019 with chip revival in store

Samsung to draw line under lackluster 2019 with chip revival in store

SEOUL (Reuters) – With Samsung Electronics (005380.KS) expected to suffer its biggest annual profit drop in at least a decade, investors are counting on an expected uptick in the memory-chip market to cure the tech giant’s ills this year. FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea January 7, 2019. REUTERS/Kim Hong-Ji When it issues preliminary fourth-quarter results on Jan. 8, the world’s top maker of memory chips used in smartphones, laptops and servers is set to post a 40% slump in operating profit to 6.48 trillion won ($5.56 billion), according to Refinitiv SmartEstimate, weighted towards more consistently accurate analysts. The three months ended December are expected to mark the South Korean firm’s fifth year-on-year decline in quarterly profit, ending a year marred by bloated stockpiles of chips that squeezed prices, and the U.S.-China trade war that roiled global supply chains and prospects for consumer demand. With 2018 having been a record year for earnings, last year’s slump likely means Samsung posted its biggest percentage drop in annual profit in at least a decade. But with the United States suspending planned December tariffs on Chinese goods, including mobile phones and laptops,… Read full this story

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