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Samsung likely to report first profit drop in two years due to China slowdown

Samsung likely to report first profit drop in two years due to China slowdown

The Samsung Galaxy Note9.

The slowing financial progress in China will not be solely affecting Apple as it’s estimated to have an effect on Samsung’s fourth quarter earnings report. 

According to Reuters, knowledge from the Institutional Brokers’ Estimate System (IBES) suggests a 12% year-on-year drop in working profit to US$11.85 billion for Samsung. If true, this may be Samsung’s first drop in quarterly working profit in two years! 

“Depressed demand in China will additional drive down Samsung’s chip gross sales there. And China’s total smartphone market is stalled and declining, which is able to have an effect on not solely Apple however Samsung,” Song Myung-sup, a senior analyst at HI Investment & Securities, instructed Reuters.

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Revenue is estimated to decline 5% due to decrease memory-chip shipments. Profit on the smartphone enterprise unit is predicted to drop by a fifth as effectively. The total working profit on the chip’s enterprise is predicted to drop 3.7% from a yr in the past. 

Samsung is predicted to face extra woes this yr due to the weakening of the Chinese economic system and the continuing China-U.S commerce warfare.

Source: Reuters

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