Samsung warns on profits as chip and LCD prices fall
Samsung Electronics warned Tuesday that it would report disappointing financial results thanks to slumping prices for chips and LCD screens, in another sign of slowing demand for smartphones and other gadgets.
The South Korean electronics giant said it was anticipating a “widening price fall among major products” for the first three months of the year amid “weakening overall demand” for its products.
The disclosure was unusual for Samsung, which typically offers a forecast of its financial performance shortly after the end of its quarterly period.
The announcement from one of the workhorses of the consumer electronics industry is the latest indication of waning global demand for sophisticated tech products.
It comes against the backdrop of a 7 percent decline in smartphone shipments globally during the fourth quarter of 2018, the fifth quarterly decline, according to an analysis by the Hong Kong-based research firm Counterpoint.