Samsung Electronics announced that it expects its first quarter earnings to be below market expectations - due to weakness in its display and memory businesses.
Samsung says that LCD prices have dropped more than expected and demand for its flexible OLED also declined. Analysts from Susquehanna Financial Group estimate that a weak smartphone market and a "dramatic" decline of Apple iPhone OLED orders caused Samsung Display's revenue to decline around 50% compared to Q4 2018.
One bright spot for Samsung, though, is the strong sales of its Galaxy S10 smartphone family. Susquehanna estimates that Samsung will ship 12 million units by the end of March, and will ship 10-12 millions in Q2 2019.
Last week CLSA analysts estimated that Samsung's OLED shipments have declined 26% in Q1 2019 as global handset shipments remain weak (especially in China) and shipments to Apple declined 60%. CLSA estimates that utilization at Samsung's OLED fabs fell to 65% (rigid) and 40% (flexible). For more info on CLSA's estimates, click here.
