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drastic decline in earnings in the first quarter

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Seoul (AFP)

South Africa's Samsung Electronics, the world's largest chip and smartphone maker, reported a decline in net earnings in the first quarter on Tuesday due to a decline in demand for its flagship products and a deterioration in competition.

For the January to March period, Samsung's net profit was $ 5,040 trillion (€ 3.9 billion), down 56.9% y / y. Compared to the same period of 2018, sales decreased by 13.5% to Won 52,400 billion (EUR 40.4 billion).

Samsung Electronics is the flagship of the Samsung Group, by far the largest of South Korea's largest conglomerates, whose health is vital to the world's eleventh largest economy.

Despite a number of failures, the company's profits in recent years have tended to resist, including the humiliating series of product downloads and top management imprisonment. However, its profitability is under strong pressure due to the growing global supply of electronic components, while demand is declining.

Samsung Electronics is also facing increasing competition in the smartphone market from its Chinese competitors offering equivalent products at lower prices, such as Huawei, which outpaced Apple in 2017 and is now second in the world. ,

"Mobile devices suffer from slow demand and increased competition," said Samsung Electronics in a statement. "The big screens also showed the effects of falling LCD panel prices in the context of bad seasonal results," he added.

On April 23, Samsung decided to postpone the release of Fold Folding Smartphone, presented as a technology performance, due to screen problems.

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