After Apple, Samsung Also Hit By Slump in Smartphone Sales in China

China proves a bad land for both Apple and Samsung as both companies have suffered sales slump here. After Apple, Samsung has also registered poor sales performance of its smartphones.

Samsung follows in the footsteps of Apple, not in terms of manufacturing excellent products but sales slump in China. After Apple witnessed slow iPhone demand in China, Samsung also registered poor performance as the leading maker of semiconductors and smartphones is set to post its first drop in quarterly operating profit in two years.

It is known to all that China is a crucial market for South Korean giant, and Cupertino based Apple. Investors are already facing tough phase after Apple has seen rejection in China as the people there prefer homespun alternatives like Huawei.

Sponsored Links

Samsung to Report fall in y-o-y operating profit in China for the last quarter of 2018

Samsung is supposedly releasing its profit warning on Tuesday, i.e., today and will reveal a 12% fall in its year-on-year operating profit for the last quarter of 2018. Moreover, the company’s revenue is also expected to drop by 5%.

Tim Cook, Apple’s CEO, in his letter to investors, mentioned that increasing price is not the only reason for iPhone’s dwindling sales. In his interview with CNBC, Cook listed some reasons for the reduced sales of iPhone. One of the causes is Apple’s struggle in China, where sales of a smartphone fell around 8% last quarter.

Apart from the handset business of Samsung, the slump has affected other products of the Korean company.

Samsung’s Profit Warning

Samsung holds only 1% of the Chinese smartphone market against Apple’s staggering 9%. But one should not forget that Samsung is one of the world’s largest makers of memory chips and semiconductors.

Sponsored Links

Along with handset business, Samsung witnessed a year-on-year decrease in shipments of the chip (3.7%) and memory cards (10%) during the same quarter.

According to South China Morning Post, “Samsung, due to publish preliminary fourth-quarter results on January 8, is expected to see a 12 percent year-on-year drop in operating profit to 13.3 trillion won (US$11.85 billion) for the period, I/B/E/S data from Refinitiv shows.”

For Samsung, 2019 is going to be a bleak year as the report mentions that its profits will continue to fall during this year in spite of adjustments in memory pricing.

Summing up…

Sponsored Links

From the reports, it has become crystal clear that 2019 will be an unhealthy year for tech companies. Making profit from the hardware business will be a tough nut. Probably, for this reason, Apple has begun to concentrate on its Services business as it has joined hands with Samsung for iTunes Movies and TV shows.

Related Posts:

Do you think Apple and Samsung can sail their ships against the turbulent waters? Share your feedback with us on Facebook, Twitter, and Telegram. Also, make sure to download our app to read more exciting news stories.

Jignesh Padhiyarhttps://www.igeeksblog.com
Jignesh Padhiyar is the co-founder of iGeeksBlog.com who has a keen eye for news, rumors and all the unusual stuff that happens around Apple products. During his tight schedule, Jignesh finds some moments of respite to share side-splitting contents on social media.

Latest Articles

Foxconn Plans to Move iPhone Assembly to India

In a bid to reduce Apple's dependence on China, iPhone assembler Foxconn is planning to shift to India for iPhone assembly. Foxconn is a Taiwan...

30 iPad and iPhone Apps Price Drop – 22 January 2019

What happens when you come to know that one of your favorite iPhone/iPad apps price has just dropped-and available at a huge discount? A...

20 Paid iPad and iPhone Apps Gone Free Today – 22 January 2019

iOS Games Gone Free TodayiOS Apps Gone Free TodayWhile there are tons of awesome apps available for free, a number of extraordinary ones come...

How to Open Links in Chrome on iPhone and iPad Using Shortcuts App

Android users have a privilege to use Google Chrome as their default browser. That's not the case with iOS users, as they have one...