Samsung Electronics' 2019 operating profit drops 52.9% year-on-year
According to foreign media reports, due to the improvement in the global chip market's weak trend, South Korea's Samsung Electronics' operating profit in the fourth quarter of 2019 decreased year-on-year, but operating profit for the full year of 2019 still fell 52.9% year-on-year.
According to the Yonhap News Agency, a report released by Samsung Electronics on the 8th shows that the company's fourth-quarter 2019 operating profit is expected to be 7.1 trillion won (approximately $ 6.1 billion), a year-on-year decrease of 34.26%; the turnover is 59 trillion won, The decrease was 0.5%. For the full year of 2019, operating profit was 27.7 trillion won, down 52.9% year-on-year, and sales were 229.5 trillion won, down 5.85% year-on-year.
It is reported that since the fourth quarter of 2018 operating profit decreased by 28.7% year-on-year, Samsung Electronics' operating profit has fallen sharply for several consecutive quarters. In the first three quarters of 2019, Samsung Electronics' operating profit decreased by 60.2%, 55.6% and 55.7% year-on-year. However, Samsung Electronics' profit decline in the fourth quarter of 2019 has improved due to the bottom of the decline in chip prices and the improvement in the performance of the smart phone business.
Samsung Electronics has experienced a decline in profits since the end of 2018, mainly due to the oversupply situation caused by the rapid development of the chip industry in the previous two years, and the chip price has fallen sharply. Yonhap News Agency reported that insiders said that the prices of DRAM memory and NAND flash memory fell sharply last year, and these chip products contributed about half of Samsung Electronics 'sales, so Samsung Electronics' profitability was greatly affected.
There is also analysis that Japan announced in July 2019 that it will take control of several important raw materials in the manufacturing industry such as chips and smartphones exported to South Korea, which will adversely affect Samsung Electronics, which relies on semiconductor chips and OLED screen business.