Smartphone maker Samsung Electronics recorded a 38 percent slump in profits for the last three months of 2019, attributed to weakening demand in key products and falling chip prices.
In 2019, the global memory chip market was hit by rising supply and falling demand, affecting profits for most chip suppliers in the world.
“Fourth-quarter profit dropped from a year earlier due to the continued fall in memory chip prices and weakness in display panels,” Samsung said in a statement.
In the first quarter of 2020, the company expects weak sales from seasonality in memory chips, OLED and consumer electronics following continued uncertainties in the global business environment.
Sales in the fourth quarter stood at 59.9 trillion Korean Won (Ksh504 billion). For full-year 2019, the firm reported net profits of 21.7 trillion Korean Won (Ksh183 billion), a 51 percent slump year-on-year.
The slump however is attributed to woes facing Samsung vice chairman Lee Jae-yong who is on trial for the second time over a corruption scandal that led to the impeachment of South Korea’s former president Park Geun-hye.
Samsung held 36 percent of market share closely trailing Huawei, which was leading the tight race with 37 percent of the smartphone market.