Thursday , January 21 2021

Apple and Samsung: why these two giant mobile profits are falling

Samsung said Tuesday night that a profit operation is calculated $ 9,670 million from October to December, 29% less compared to the same period of 2017.

And the weakest profits in the world's biggest mobile phone market add to investors' concerns (third in the list after the Chinese Huawei), last week, in the last quarter of 2018, announced a drop in unusual profits.

Apple's executive director, Time Cook, said on Wednesday that the company calculates revenue from nearby 84,000 million dollars In the last three months of the year, at least $ 89 billion less than the forecast.

This announcement has not only been disclosed to investors, but in the stock market, in general.

That day, Apple shares fell by 10%, Value of US $ 142.19. And in the four trading days of 2019, the value of the manzanita company's value has already lost $ 10.

As in other consumer products companies, the end of the year's summer season is most pronounced in the last quarter of the year.

But Apple's revenue forecast (the final results will be published in early February) will drop by 5% less than in the same period of the previous year and The inter-annual year-on-year fall between the year 2016 and the year after year.

And as Samsung's mobile phone market is a big competitor, Samsung does not seem to be a celebration too.

South Korean company has dropped 10% in relation to the last quarter of 2017.

Chinese economy

What are the main reasons why Apple and Samsung have fallen profits?

Apple and Samsung generally do not give explanations of profit forecasts, but at the moment this custom broke up.

Samsung provided details on how to calculate the fourth quarter earnings Investors "alleviate disturbance", because the forecast is below the market forecasts.

"We expect that the profits will be moderated in the first quarter of 2019, due to difficult conditions for memory chip business," he said.

Reuters analysts expect Samsung's profits to collapse in 2019, which is why If you slow down the Chinese economy, the demand for chips and phones is increasing.

Samsung is a leader in the global mobile phone market, but the Chinese rivalry like Huawei is growing.

Apple is also coming up with problems coming from China. In a letter to investors, Apple's director pointed to the Asian giant as a source of difficulties. In that country, it generates around 20% of income.

"Even if we anticipate some challenges in the key markets of the future, We do not know how to predict the magnitude of a slower economy, especially in China"he said.

This is the first time that Google iPhone manufacturers have analyzed their financial results for a letter to their investors.

Commercial and sales war

In addition to the problems of economic slowdown, Apple has said commercial voltages It was the United States and China consumer confidence damaged.

"As the climate of uncertainty with a heavy financial market economy, the effects also seemed to reach consumers, as our retail and channel partners' traffic went down in China in the quarter," wrote Cook's letter.

In the end, Apple CEO also acknowledged that Developed countries expect less customers to update their iPhones.

This confirms that iPhones sales are falling. And some analysts have said a new Apple fall has dragged technological problems down some time ago.

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