Samsung, LG report lower-than-expected sales on heels of Apple’s guidance miss

Samsung
Samsung reported a decline in quarterly profit and revenue below previous estimates, according to Bloomberg’s review of preliminary results.

Apple isn’t the only smartphone maker struggling to maintain growth. Two of its largest competitors, Samsung and LG, have reported lower-than-expected sales for the same period ending in December 2018.

Samsung reported a decline in quarterly profit and revenue below previous estimates, according to Bloomberg’s review of preliminary results. The South Korean company said operating income likely fell 22% to $9.6 billion in the final quarter of 2018 and blamed much of the decline on slowing demand for memory chips amid worsening trade relations between the U.S. and China.

Samsung’s revenue also likely dipped 11% during the quarter to $52.5 billion, according to Bloomberg. The company won’t release net income until it releases final results later this month. Samsung warned that earnings will remain low through the first three months of 2019, but it expects profitability to recover in the second half of the year.

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LG is also struggling to meet expectations. The fellow South Korean company says its fourth-quarter revenue likely fell 7% to $14 billion, while operating profit slid 80% from the same period a year ago, according to Reuters.

RELATED: Apple cuts sales forecast for first time in 15 years

The second-largest television maker in the world expects profits to come in at $67 million for the quarter, falling well short of the $344 million projected by analysts, according to Reuters. LG’s struggles are primarily attributed to lower profit margins on TVs, lower-than-expected sales of home appliances and a loss-making smartphone business. LG will report its final results for the quarter later this month.

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