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Samsung profits dropped 53 per cent over 2019

(Image credit: Image Credit: JPstock / Shutterstock)

Samsung’s quarterly revenue and profits are expected to see a significant drop compared to last year, the media are saying. According to ZDNet, the South Korean tech giant’s quarterly report should show 7.1 trillion won in operating profit, and 59 trillion won in revenue, for Q4 2019.

Year-on-year, that’s a 34 per cent, and 0.5 per cent down, respectively.

It’s hardly surprising, though, as the same things happened in Q2 and Q3. ZDNet claims there’s been “weak demand” for memory chips, compared to 2018, and that’s what’s driving the sales to the ground.

Still, the operating profit will be higher than what analysts, expecting 6.5 trillion won, anticipated. For the media, that’s a sign of possible slight recovery in memory demand. NAND prices have been rising all throughout the year, it was added.

Looking at individual departments, Samsung Display is expected to post less than ideal results due to weaker demand, while its mobile department is expected to show positive results, mostly due to Galaxy Fold and the Galaxy S10 5G.

The company sold 6.7 million 5G variants of its flagship last year – almost three million more than anticipated.

However, when it all adds up – total operating profit for the year will be around 27.2 trillion won, or 53 per cent less than in 2018.