These are not good times for Samsung, something shown by its latest results for the first quarter of the year. The company has announced a drop in its profits of 60%, which translates to about 4.9 billion euros. This is the largest decrease recorded in four years, when they suffered a drop of 56%. The reasons for all this are no mystery: the decline in smartphone sales and the drop in component prices.
Samsung already warned last month that its results would be lower than estimates. The drop in prices of NAND and DRAM memories, manufactured by the company, added to the decrease in orders from such important clients as Amazon or Apple is one of the reasons for its drop in income. As pointed out by Bloomberg, DRAM prices experienced the strongest fall in the same season since 2011. This sector will reach 69,000 million euros at the exchange rate this year, representing a decrease of 22% compared to the previous year.
Likewise, its displays division, which supplies Apple, has also been hit by lower-than-expected sales of iPhones and by competition from Chinese monitor and television manufacturers. On the other hand, telephony consumers are increasingly waiting longer to update their phone. With so many new models and so much competition it is very difficult to stay in the sector. In fact, sales for this quarter have fallen short of expectations, one trillion Korean won below to be exact (from 53 to 52 billion). At the moment, there is no more information on this data until Samsung publishes its final results at the end of the month.
However, the Asian company hopes that its current flagship Samsung Galaxy S10 and the new folding mobile, Samsung Galaxy Fold, will help it in the face of future results. To all this must be added its efforts to keep its mid-range updated, with cheaper terminals with modern and current features. This is the case of the last members of the Galaxy A family, with the Samsung Galaxy A50 at the helm.
