Digital Transformation

Samsung blames shock profit warning on chip dip

By John Glenday | Reporter



Samsung article

March 26, 2019 | 3 min read

Korean electronics conglomerate Samsung has pinned the blame for a shock profit warning on a slide in the market value for memory chips, compounding ongoing declines in the value of LCD screens and semi-conductors.

The reversal in fortune comes amid a global slowdown in demand driven by Amazon and Google scaling back orders for computer memory as well as lower than anticipated screen demand for Apple’s iPhone, as existing owners opt to hold onto their devices for longer.

Outlining its predicament Samsung wrote in a regulatory filing: "The company expects the scope of price declines in main memory chip products to be larger than expected."


Samsung blames shock profit warning on chip dip

Samsung has itself been hit hard by a perfect storm of declining smartphone sales as markets reach a saturation point, a lack of innovation eroding the annual upgrade cycle and the arrival of upstart smartphone makers such as Xiaomi offering high-end devices at lower cost.

Samsung will release its full preliminary results early next month.

Last month Samsung axed its controversial partnership with Supreme Italia, a counterfeit business posing as the popular streetwear brand

The latest marketing news and insights straight to your inbox.

Get the best of The Drum by choosing from a series of great email briefings, whether that’s daily news, weekly recaps or deep dives into media or creativity.

Sign up
Digital Transformation

Content created with:

Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. It comprises numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol.  

Find out more

More from Digital Transformation

View all


Industry insights

View all
Add your own content +