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Samsung issues Q1 profit warning on weak memory chip market


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Samsung issues Q1 profit warning on weak memory chip market

Samsung Electronics Co. Ltd. expects first-quarter earnings to fall below market estimates amid continued weakness in its memory chip and display businesses, the company said in a March 26 regulatory filing.

The South Korean company said price declines in memory chip products will likely be larger than previously expected, following a recent announcement that weak demand for its display panels and global trade tensions would weigh on the company's results in 2019.

The smartphone maker partly attributed the higher-than-expected price declines in display products to increased capacity at Chinese firms.

Samsung Electronics closed the session down 0.55% in Seoul.

Memory chip makers have been grappling with a weak memory market, with analysts saying that price declines, slow demand and global trade issues could upset a quick recovery expected by vendors and drag the struggle into next year.