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Samsung's 1st quarter earnings will be nasty – TechCrunch



Back then, Samsung has reported guidance for the upcoming quarter – and it doesn't look good.

Samsung predicts that quarterly revenue will reach $ 51-53 trillion ($ 44.87- $ 46.63bn), which would be a decline of about 15 percent a year earlier. The Korean tech giant reported a record operating profit in Q1 2018 – $ 13.76 billion – but this time it is expected to fall by 60 percent for the current quarter's business. According to Bloomberg, it would be the worst case of the company in four years.

After a record year it will never be easy, but the forecast for Q1 2019 at KRW 6.1-6.3 billion – about $ 5.5 billion – represents a pretty steep 43 percent drop in the previous quarter. This will give Samsung shareholders a lot to worry about.

The company's pre-earnings guidance does not go into detail about the predictions, but last year's record profits were largely down to the success of its consumer care business and also a strong memory chip market. There have been lots of warning signs that the good times may not last.

Samsung itself played down these impressive Q1

2018 results in more warnings on the future – my colleague Brian Heater pointed out that the words "slow growth" appeared seven times in Samsung's advertising at that time – due to concerns about the company's display panel business and a slower growth within the general smartphone industry.

As we know, analyst reports show that people buy fewer phones for a number of reasons. It's an explanation of Apple's multi-device approach that pushes its top-of-the-range model to well beyond the $ 1000 mark. Slow growth means a need to extract more revenue from the most loyal users, thus increasing the overall average selling price (ASP).

Samsung has long been playing in the mid-tier – where it stands up to fierce competition from likes of Xiaomi, Oppo, Huawei and others from China – but it will be interesting to see if it changes its top -end access.

We know more when the company releases its full income statement later this month so the yard remained.


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