Samsung's operating profit fell by 60 percent in the first quarter. The South Korean giant is struggling with the problems with the new Galaxy fold and weakening demand for memory chips, CNN writes.
The largest manufacturer of smartphones in the world, reported an operating profit of 6.2 trillion won (5.3 billion dollars) in the first three months of the year to 15.6 trillion won (13.4 billion dollars), while over the same period last year. Sales fell 14 percent to 52.4 trillion won (45 billion dollars) and. The company's shares fell about 1 percent.
Samsung said that among the reasons for the decline is stagnating global mobile phone market and lower demand for memory chips. Operating profit for the last quarter was the lowest level since late 2016, when the company was dealing with the fiasco with Galaxy Note 7.
The disappointing report comes only a week after Samsung announced that slows the release of standby clamshell Galaxy Fold times including several journalists, who have received prior model is broken.
During a call with investors and analysts, Samsung said it analyzed the returned parts. The company found that the broken screens due to pressure on the screen near the top and the bottom, where the display was less reserved. The manufacturer says it is working on a solution to this problem, but at the same time it is obvious to shift some of the blame consumers.