Samsung’s Record-Breaking Streak Is Ending. Blame Its Memory.
Summary
Sales of smartphones have begun to plateau, weighing on Samsung’s bottom line.CreditKim Hee-Chul/EPA, via ShutterstockFalling chip prices have cut into Samsung’s margins and put an end to almost two years of increasing profits.The Korean technology company has forecast that its operating profits for the second quarter of 2018 would be 14.8 trillion won (about $13.2 billion).There are now far fewer first-time purchasers of smartphones and feature improvements have become more modest, meaning consumers no longer need to upgrade their devices as often.(Ailing smartphone sales actually seem to be hurting Samsung doubly: The company’s current flagship device, the Galaxy S9, isn’t selling as well as it hoped, The Financial Times reported .Chinese regulators are currently investigating Samsung, SK Hynix and Micron Technology, which together control the market for memory chips, over concerns that the trio have been propping up prices.