Shulou(Shulou.com)11/24 Report--

March 27 news, according to foreign media reports, the decline in demand for consumer electronics products caused by multiple unfavorable factors has affected Samsung Electronics' memory chip business, which is an important source of profit. Revenue fell by more than 20% in the third and fourth quarters of last year compared with the same period last year, and the operating profits of its device solutions department also dropped sharply compared with the same period last year.

As the decline in demand for consumer electronics continues, Samsung's memory chip business is still under pressure, and analysts expect Samsung's chip business to lose money in the first quarter of this year.

Analysts expect the device solutions division of Samsung's chip business to lose money again after 14 years in the first quarter of this year, the last time it was in the first quarter of 2009.

As for the chip business, an analyst in South Korea expects a loss of 3.3 trillion won, or about $2.5 billion.

In Samsung's chip business, shipments of DRAM and NAND flash memory are expected to fall 13% and 12% respectively in the first quarter from the previous quarter, while profits from the contract manufacturing business are also expected to decline because of slowing demand, the analyst predicted.

Samsung Electronics's chip business accounts for a considerable proportion of the revenue of the device solutions division, which exceeded 50% in the third and fourth quarters of last year. The loss of the chip business is bound to affect the device solutions department.

For the equipment solutions division, a South Korean analyst expects an even larger operating loss in the first quarter, which is expected to reach 4.1 trillion won.

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