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a sharp drop in profits in Q1


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Seoul (RPT)

South Korea's Samsung Electronics, the world's largest chip maker and smartphones, announced Tuesday plunge in net profit in the first quarter due to a drop in demand for flagship products and increased competition.

In the period from January to March, Samsung's net profit reached 5.040 billion won (3.9 billion euros), up 56.9% year on year, said the group. Revenue decreased by 13.5% compared to the same period of 2018 years to 52 400 billion won (40.4 billion Euros).

Samsung Electronics with & # 39 is the flagship of Samsung Group, today with the & # 39; is the largest South Korean giant conglomerates and there & # 39; and whose health with & # 39 is vital for the world economy 11.

Profit companies tend to resist in recent years, despite a series of setbacks, including a humiliating series of product recalls and imprisonment of its main leader. But profitability is under stress due to the increase in the global supply of electronic components, and the demand is reduced.

Samsung Electronics is also facing increasing competition in the smartphone market, its Chinese competitors offer equivalent products at lower prices as Huawei, which is superior to Apple's, in 2017 and is currently ranked second in the world,

"Mobile devices are affected by the slowdown in demand and increased competition," said Samsung Electronics in a statement. "Big screens also accused the impact of falling prices for LCD panels, in the context of seasonal bad results," he added.

Samsung had on April 23 to postpone the release of its sophisticated smartphone fold, presented as a technological feat, due to a problem on the screen.

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