Samsung Electronics' operating profits fell by more than a third in the fourth quarter. Samsung was hit by a series of difficulties in 2019, with chip stockpiles bloating and prices falling, in contrast to the booming market of the previous years. In each of the first three quarters of 2019, net profits fell by more than half year-on-year.
According to analysts, with chip demand starting to improve and strong smartphone sales, the figures might beat the expectations.
Samsung Electronics is crucial to South Korea's economic health. It is the flagship subsidiary of the giant Samsung Group, by far the largest of the family-controlled conglomerates known as ‘chaebols’ that dominate business in the world's 11th-largest economy.
Samsung Electronics projected its operating profits in the October to December period at 7.1 trillion won ($6.1 billion), down 34.2 percent year-on-year. Sales were forecasted to be flat at 59 trillion won. For full-year 2019, it predicted operating profits of 27.7 trillion won, down 52.9 percent.
The company has been strained by a protracted trade dispute between China and the US. It had also been caught up in a diplomatic row between Seoul and Tokyo over historical disputes, with Japan imposing tough restrictions on exports crucial to South Korean tech giants in July.
Its vice chairman and de-facto leader Lee Jae-yong is on trial for the second time over the sprawling corruption scandal that led to the impeachment of South Korea's former president Park Geun-hye.
Samsung is also hoping on increasing the availability of 5G telecom services that would drive sales for it.
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