Samsung Electronics said it expects profit to decline in the current quarter as sales of smartphones, gadgets and TVs take a dive, although the memory chip business would remain solid
The South Korean conglomerate joined other tech giants such as SK Hynix and Intel in declining to provide annual forecasts because of the uncertainty about the duration of the pandemic.
In contrast, Samsung said it expected its mobile and TV profits to “decline significantly” in the second quarter as consumers reined in spending on non-essentials and stores and factories are closed due to the outbreak. “Earnings will deteriorate in earnest for mobile phones, home appliances and TVs, which are weighing on stocks,” said Park Sung-soon, an analyst at Cape Investment and Securities.
Some customers were also restocking chips because of concerns about supply disruptions due to the pandemic, boosting chip earnings, it said.Samsung said that while mobile shipments fell from the previous quarter, profitability improved with 5G and other premium models making up a greater portion of sales.
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