Samsung warns on profits as chip and LCD prices fall

The Buffalo News - - BUSINESS -

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.

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