{"id":605433,"date":"2019-04-05T21:57:07","date_gmt":"2019-04-05T21:57:07","guid":{"rendered":"
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Samsung is feeling the chill from cooling global demand for smartphones.<\/span><\/span><\/span><\/p>\n

The South Korean technology giant\u00a0said<\/span>\u00a0Friday that it expects operating profit for the first quarter to plunge by 60% compared to the same period year ago.<\/span><\/span><\/span><\/p>\n

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Samsung\u00a0warned last week that its earnings would be hit by slowing demand for memory chips and display panels, a sign that device makers and their suppliers are coming under pressure.<\/span><\/span><\/span><\/p>\n

The company estimated Friday that operating profit for the first three months of 2019 will total 6.2 trillion Korean won ($5.4 billion), lower than analysts’ already downbeat expectations.<\/span><\/span><\/span><\/p>\n

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It expects to report a sales decline of roughly 14% when full earnings are published later in April.<\/span><\/span><\/span><\/p>\n

Samsung is the world’s biggest seller of smartphones. But it also has a huge business making key components for rival handset manufacturers. That means it suffers on both fronts when the industry runs into trouble.<\/span><\/span><\/span><\/p>\n

The global market for smartphones shrank more than 4% in 2018 and could contract again this year, according to market research firm IDC.<\/span><\/span><\/span><\/p>\n

China, the world’s biggest market for the devices, has been particularly\u00a0weak<\/span>.\u00a0Apple\u00a0stunned global markets in January when it said iPhone sales would come in lower than expected.<\/span><\/span><\/span><\/p>\n

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A range of factors are hurting the industry, including increasingly saturated markets, consumers replacing their phones less often and frustration over rising prices.<\/span><\/span><\/span><\/p>\n

Samsung’s stock was little changed in Seoul trading Friday, as investors had largely predicted the earnings slump.<\/span><\/span><\/span><\/p>\n

Some analysts think the downturn in earnings could be short-lived.<\/span><\/span><\/span><\/p>\n

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Investment research firm Fitch Ratings pointed out that demand for advanced chips was rising in areas like autos and industrial sectors, with Samsung well-positioned to benefit.<\/span><\/span><\/span><\/p>\n

“We believe that Samsung’s results are likely to recover towards the end of this year,” Fitch analyst Shelley Jang wrote in a note to clients Friday.<\/span><\/span><\/span><\/p>\n

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