Love to play computer games On January 8, it was reported that Samsung Electronics achieved the highest profit ever in the last quarter, but the situation in the past three months seems not so good. According to foreign media reports, the company released a report today, saying that the revenue and profit of the three months ended December 31, 2018 will decline significantly year on year.

Samsung Electronics expects its sales in the fourth quarter of 2018 to be about 59 trillion won (about $52.5 billion), down 11% year on year, and its operating profit to be down 29%, about 10.8 trillion won (about $9.6 billion). This forecast shocked investors and analysts. CNBC pointed out that they had expected Samsung to earn 13.2 trillion won of operating profit from 62.8 trillion won of revenue.

It is reported that the two main reasons for Samsung's poor performance are "sluggish memory demand" and "intensified smartphone competition". It is said that Samsung's memory customers made inventory adjustments, so Samsung's memory shipments declined. The company said that due to stable sales and seasonal reasons, their spending on smartphone marketing increased, which was affected by "non recurring expenses".

Analysts predict that Samsung's earnings will continue to weaken due to the continued slowdown in memory demand, and the situation will improve in the second half of the year. Samsung believes that 5G and folding mobile phones will improve the performance of the mobile sector, and the market share of their mobile OLED screens will continue to rise.

It is worth mentioning that Apple also released a revenue forecast report at the beginning of this month. Both companies are affected by the steady demand for smart phones. They also face fierce competition from Chinese companies such as Huawei and Xiaomi. Huawei's mobile phone business is much better than that of Samsung and Apple. Huawei recently announced that its mobile phone sales in 2018 exceeded 200 million.

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