Samsung Electronics hopes to achieveoperating profitof 10.8 trillion won (8,384 million eurosros) in the fourth quarter of the year, a figure that would represent a downward adjustment of 28.7% in relation to its operating result in the same period of the previous year, as a consequence of the weak demand in the memory business and the more intense competition in smartphones, adding to the pessimism about the evolution of the sector after Apple's 'profit warning' last week.
In this sense, the South Korean manufacturer has also anticipated aworse evolution of its sales during the fourth quarter, when it calculates that its turnover will reach 59 trillion won (45.804 million euros), which implies a decrease of 10.6% compared to the same period of the previous year.
"Operating profits decreased drastically due to thelackluster demand in the memory divisionand the intensification of competition in the 'smartphones' sector, "the company said in a statement picked up by the South Korean agency Yonhap.
However, despite the worst expected evolution for the final quarter of 2018, Samsung expects to achieve an operating profit of 58.89 trillion won (45,720 million euros) over the year as a whole, 9.7% more than the previous year, whileIt expects to invoice 243.51 trillion won (189,053 million euros), 1.6% more.
"The demand for memories will rebound in the second half (of the year) with the launch of new CPUs and smartphones (…) In the medium and long term,supply and demand will be balanced, as technical barriers and capital intensity will put pressure on the supply side, "the company added.
Last week,Apple revised its revenue forecast in the first quarter of its fiscal yearfiscal, which ran between October and December 2018, when it expects to reach a turnover of 84,000 million dollars (73,910 million euros), mainly as a result of the poor evolution of sales of the iPhone in China, as acknowledged by the CEO of the company, Tim Cook, in a letter sent to investors.
In this way, theCupertino multinational cut by 5.6%and 9.7% its previous sales expectations, which anticipated an income range of between 89,000 and 93,000 million dollars (78,309 and 81,829 million euros).