Samsung Electronics said on Wednesday the coronavirus pandemic would damage gross sales of smartphones and buyer electronics this 12 months, whilst need from knowledge centres would gas a recovery in memory chip markets.
Chief Govt Kim Ki-nam claimed the coronavirus and US-China trade disputes were casting a shadow in excess of the outlook for the South Korean tech big, whose Galaxy smartphones vie with Apple’s iPhones for world wide dominance.
The world-wide smartphone market place was expected to convert to development this 12 months, but with virus displaying signals of currently being prolonged, the smartphone market place is contracting.
But 5G smartphone desire is anticipated to increase,” Koh Dong-jin, president of Samsung’s cellular and community business enterprise, informed the once-a-year normal meeting in Seoul.While the smartphone current market would shrink, Kim claimed the chip current market – which can make up about 50 percent of Samsung’s working gain – would see demand progress immediately after a slump past 12 months exacerbated by extra offer and US-China trade tensions.Other chipmakers like Broadcom have both lower or pulled their product sales outlook because of to disruptions triggered by the coronavirus outbreak, but world wide chief Samsung said it expected investments from knowledge centre companies and new prospects in places these types of as 5G wireless networks and vehicles to push chip profits increased in 2020.
At the very same time, Kim explained he anticipated chipmakers to aim on upgrading manufacturing procedures relatively than growing capability this yr, limiting offer.
Samsung Elec shares have been up .6 percent as of 0120 GMT, in comparison to a .5 percent fall of the broader sector.Shareholders scannedSamsung’s annual basic conference drew a group of only about 400 shareholders this 12 months, sharply down from about 1,000 last year, as South Korea battles the largest coronavirus outbreak in Asia outside China.
Investors were being scanned with thermal cameras and checked with thermometers as they arrived, and sat two seats absent from each individual other as component of steps to assure the meeting could go ahead safely.
Samsung Electronics also adopted electronic voting for the conference and encouraged shareholders to solid votes on the net.Kim Hyun-suk, the firm’s purchaser electronics chief, explained it was too early to predict how the virus would impression on customers.