After Apple sent out guidance a few days ago about lower than expected profits, it’s now Korean giant Samsung turn. The company has estimated at least a 29 percent drop in quarterly operating profits.
How significant is the drop? Well, the company predicts that profits for Q4 of 2018 are set to drop a staggering 29% year-on-year to just $9.67 billion, from $13.27 just the same period last year. Total sales for the company are also down 10.6% from the previous year.
Samsung is blaming intense competition from Chinese rivals that has managed to continually eat up its traditional market share from the mid-range all the way to the high-end segment of the market. The company also blamed “difficult conditions for the memory business” for the lower than expected profits.
Samsung is referring to drastic drops in sales of smartphone companies in China that use their memory chips and modules, which ultimately took a drastic toll in chip demand and overall sales.