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The low sales of the iPhone cost Samsung’s income accounts

In Samsung they are worried about their accounts. It seems that in the first quarter of 2019 they are obtaining results that are much lower than expected. Periodically they usually publish a guide with their economic status to inform the investors and they will advance the accounts with the aim of letting them know that the year has not started as well as they expected.

According to data handled by Reuters, Samsung is expected to close the first quarter of 2019 with a profit of 6.4 billion dollars. Some worrying numbers considering that last year more than doubled (13.8 billion) in the same period. In a week the figures will be confirmed, but the expectations that they had for this year begin to have some questions.

The main reasons for this fall are the fall in sales of chips and screens that other brands ask for. In a domino effect, also the prices of chips are falling by up to 20% in many models. But why does this happen? One of the main reasons is the low sales of iPhones.

Apple announced at the beginning of the year that it would manufacture fewer iPhones due to the low demand they are having and in the act of yesterday it was seen how they are directing their efforts towards the sale of services. The latest iPhone do not sell as much as expected and this drags a large part of the sector.

The economic slowdown in some countries, lower sales of latest generation phones worldwide and the slight fall that Apple has suffered with its latest model, all this has turned on the alarm lights in the Korean company. At the end of 2018, Samsung warned its investors that there was a risk of lower profits due to lack of demand, but they did not imagine that it was so strong.

And now? It seems that Samsung will be pushed to redirect their energies. One of the outputs that are valued most strongly is the investment in mobile folding. They hope that placing themselves among the companies at the head of these models will help them. But like any investment, there is nothing insured.

In a week from now we will know to what extent Samsung’s economy has affected the low sales of iPhones, but many of its investors are going to spend a few days nervous about what may affect their pockets.

[Via: Reuters ]

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