Samsung Electronics Co Ltd said on Wednesday it expected profit to decline in the current quarter due to a coronavirus-related slump in sales of smartphones and TVs, although the chip business would remain solid.
FILE PHOTO: People wears masks in front a Samsung Store at a main shopping area as the country is hit by an outbreak of the new coronavirus in downtown Shanghai, China February 21, 2020. REUTERS/Aly Song
“In the second half, uncertainties driven by COVID-19 will persist as the duration and impact of the pandemic remain unknown,” Samsung said in a statement. The world’s top maker of memory chips and smartphones said net profit fell 3% to 4.9 trillion won, while revenue climbed 5.6% to 55.3 trillion won.
“Sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally,” Samsung said in a statement.“Samsung will have a greater impact from the virus in the second quarter as it has spread to Europe and the United States starting March,” said Park Kang-ho, an analyst at Daishin Securities.
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