Samsung Predicts The Growth Decline in 2019
The leading South Korean electronics manufacturer is getting ready for slowing global growth in 2019 compared to the previous year. This s why it does its best o flood the market with new devices and acquire some top-notch technological startups t get the major advantage on the market.
The decline appears to be the result of decreasing global demand for chips. At the same time, we should consider a growing competition in the niche of the mobile device and smartphone manufacturing. The situation will lead to at least 29% revenue decline compared to quarterly operating revenue in 2018. The official announcement was revealed a week after the same statement by Samsung's main rival Apple. The US manufacturer also predicts slowing global growth in the nearest future.
In October, growing demand in Samsung memory chips made it possible for the company to revamp the rapid slowdown in phones sales. However, the demand for chips is also lowering. It can lead to even more crucial sale declines.
The expectations were pretty high if considering growing sales in China that is the major marketplace for Samsung handsets and other devices. On the other hand, the Chinese economy is facing some financial troubles at the moment mostly due to struggling with the United States resulting in the rising tension between two countries.
At the same time, we should also take into account some growing Chinese smartphone producers such as Xiaomi and Huawei. They offer more affordable handsets if compared to Apple and Samsung devices. It is still unclear if two major mobile technology providers are ready to meet the growing competition in the face of cheaper manufacturers.