Samsung predicts weaker 2019 after slowing in sales of chips

Samsung said Thursday it expects weaker results in 2019, after publishing a 29% drop in operating profit in the fourth quarter, in a performance for slowdown in demand for microprocessors. The company said it expects a decline in the annual result "in 2019, although sales of memory products should start recovering in the second half. Uncertainties about the trade war initiated by the United States against China and the slowdown of the Chinese economy will achieve the performance of global electronics companies, which will press the demand for memory chips, smartphones and screens, claim analysts. But some investors expect a Samsung recovery in the second half, supported by sales of chips for data processing centers and mobile phone networks launches with 5 g technology and new devices that include a long awaited folding screen by the South Korean company. " If the foldable cell phone from Samsung is a success, it will be good news for shares of Samsung, "said Park Jung-hoon, resource manager at HDC Asset Management. Samsung stated that the fourth-quarter operating profit amounted to 10.8 trillion won (9.7 billion dollars), in line with the company's estimate. Revenue fell to 59.3 trillion 10%. The company said that demand for memory chips should remain weak in the first quarter before beginning a gradual recovery beginning in the second, which will be supported by sales to cloud computing companies. Samsung's Mobile Division had profit of 1.5 trillion won in the last quarter, a fall of 38% on a year before. Although sales of smartphones are expected to continue stable this year, the average price of the appliances should rise once more devices will have more expensive resources like multicameras, said Samsung. The company is promising launch of folding and phones compatible with 5 g technology this year. The new models of the line Galaxy must be revealed in February, but the company still did not indicate a date for the launch of the device with foldable screen.