Samsung's Q1 2019 earning guidance: Operating profit expected to fall 60 percent on year

Samsung's Q1 2019 earning guidance: Operating profit expected to fall 60 percent on year

Samsung has already stated this in its Q4 2018 results that its first half of 2019 may come with low earning records due to weak demands in memory chips business. And now its latest figures of Q1 guidance report telling the same story of what's coming next.

According to the earning guidance report for the first quarter of 2019, the company expects to post 6.2 trillion won ($5.45 billion) in operating profit, a dip of 60.4 percent from a year ago. Its sales are expected to reach at 52 trillion won ($45.7 billion) over the cited period, which is a 14.1 percent on-year fall.

While the performance of each division is yet to revealed and will come out in the full results very soon. It's expected that the earning in IT& mobile communications division to be around 2.5 to 2.7 trillion during the January-March period.

This decline in earning also reflects flattening demand in the smartphone market that's expected to settle after the launch of Galaxy S10 series, S10 5G, and Galaxy Fold.

Also, the company has played many new cards Galaxy M-series and new A-series phone in multiple markets which offers good specs in attractive pricing and most importantly receiving a great response by consumers.

Moreover, the company has successfully built its own end-to-end 5G commercial solutions and rapidly growing around the world.

Throughout last year, Samsung posted good records on the back of blooming memory chip business even though its mobile division was failed to post any good record.

Samsung also expects that the demand in the memory business to remain weak during the first quarter of this year due to seasonality and internal adjustments made by major customers, which is expected to pick up in the later first half of this year.