Just after a few days Apple’s announcement that its profits have gone down drastically, Samsung has the same kind of announcement to make. Samsung Electronics has said that both revenue and operating profit have faced a decline in the past quarter, due to the weakening demand from China. According to the company, it has observed a decline in the demand for chips and smartphones mostly.
Apparently, Apple is not the only company that got affected by the decline of the Chinese economy. It needs to be noted for most of the global companies, including Apple and Samsung, China is a potential market due to the population and proportionate demand. The hesitance of customers to purchase items from such a country would reflect changes in the global revenue outlook of any company.
The company hasn’t made the official announcement of revenue yet. The company would be revealing the data later in January when the world can know the real numbers behind. It is, however, sure that the unstable situation in the Chinese economy would cause serious problem to Samsung, which, as said earlier, relies on the market so much. Some third-party organizations have shared in-depth details, though.
For instance, it was reported that the demand for DRAM devices declined to an extent of 10% in total. NAND Flash memory chips also faced a decline of 15%, and these numbers have contributed well to the bad situation that Samsung has found itself now. Along with these, the weakening economy has rather compelled customers to stop purchasing Samsung smartphone devices.
Things are set to go worst during 2019, according to expert analysts. Many believe that Samsung will have to live with lower profits in the new year as well, considering that the tensions in China aren’t ameliorating.
Paul is a Founding Editor of conquesitor. Additionally, he is a content manager. As a full-fledged content writer and editor, he is devoted to writing news reports and bulletins about the everyday inventions, roll-outs, breakthroughs related to the business and technology field. Whenever free, he likes to spend time with kids and be like them. Thus, he visits orphanage home to help emerging bright futures.