Samsung Electronics has recorded its first-quarter profit on Thursday, but its display panel segment warns about a recession.
It could be bad news for Apple's iPhone X
"It could be a challenge to increase overall revenue across the company due to the weakness of the display panel segment and the profitability of the mobile business," Samsung said in a statement.
The display panel business creates organic light-emitting diodes, or OLED, for its own smartphones but also for the iPhone X screen.
Samsung announced its first-quarter earnings announcement that the regulatory profit of the display panel is "influenced by the slow demand of flexible OLED panels". For the second quarter, the company has predicted the same weaknesses and it has been said that it will spend the cost and improve efficiency.
China's iPhone supplier company Technical Semiconductor Manufacturing (TSMMC) warned about slow growth in smartphone chip sales. TSMC's earnings forecast in the second quarter is less than $ 7.8 billion to less than $ 7.9 billion, compared to the Wall Street estimate of $ 8.8 billion. The company blamed the "poor demand" in the mobile sector for the forecasts
Another key Apple supplier provided dramatically lower June quarter guidance. Austrian-based AMS, an Optical Sensor Supplier used in the iPhone X, said it expects to sell more than $ 22 million in the second quarter of US $ 250 million, which will reduce by 50 percent from the first quarter.
Wall Street is responsible for poor IPhone X claims for both TSMC and AMS 'weak directions.
An analyst predicted that Apple might be ready to kill the X line of iPhone this year.
Samsung said it will fall quarterly on the second quarter of the mobile revenue, as the sales of its major smartphones with the addition of the Galaxy S9 as well as higher marketing costs have decreased.
Worldwide smartphone demand decreased in the first quarter of 2014, according to a new report from the market research firm GfK. Global demand for smartphones decreased by 2 percent to 347 million units. China and the United States, shows two big markets, especially lazy demand.
Samsung's memory chip predicts business, which is the main revenue driver, maintaining its "strong performance". It expects hard demand from data centers and smartphones for both DRAM and NAND memory chips.
According to Mark Newman, managing director and senior analyst at Starford C. Bernstein, the demand for data centers will be expected to offset any weaknesses in the smartphone market.
"Data center spending is huge," Newman cited the CNBC's "Scowack Box", saying that many technology companies "are expanding the power of data centers too", and many of these memory, particularly DRAM, require this. So actually than just offseting the vulnerabilities in the handset at the moment. "
Samson posted an operating profit of 15.64 trillion Korean winners ($ 14.45 billion) for three months ended March - according to a previous estimate and 58 percent based on the Olympics.
The world's largest smartphone vendor's collective revenue won 60.56 trillion. The company said that its first quarter quarter revenue was largely driven by its memory chip business and its main smartphone such as the Galaxy S9's increased sales.
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