Canadian Manufacturing

Samsung, like Apple, feels sting of slowing global growth

Samsung reports that a weak global demand for chips and smartphone competition is driving down margins

January 8, 2019  by The Associated Press

NEW YORK – Samsung expects its quarterly operating profit will be nearly 29 per cent lower than last year, potentially unsettling a tech sector already skittish about slowing global economic growth.

The announcement from the South Korean computer chip and smartphone giant comes less than a week after Apple Inc. jolted markets with its weak expectations for revenue to end the year, citing flagging sales in China.

Apple warning of weak sales in China sends U.S. stocks sinking

Samsung said late Monday that it anticipates a quarterly operating profit of about 10.8 trillion won (US$9.6 billion).


Fourth-quarter sales are expected to be approximately 59 trillion won ($52.4 billion), down 10.6 per cent from the prior-year period.

Samsung says there’s weak global demand for chips amid a worldwide economic slowdown, while its smartphones are facing stronger competition.


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