Samsung Electronics 2016 Smartphone Drop in Sales As Troubles Increase

Tech giant Samsung warned Thursday of possible weaker in its earnings this 2016 due to softer sales on gadgets such as smartphones, and the current trend also hurting its rival the Apple Inc and other major chipmakers.

The recent South Korean firm’s warning came out day after Apple shares fell 6.5 percent, biggest percentage drop in two years, as iPhone company forecast its first sales drop after 13 years.

China’s slowing in economic growth and weaker emerging market currencies are now undercutting its major sales in electronics ranging from televisions to personal computers, this trouble not just for Samsung and Apple, but also for their major suppliers and its industry.

“Broadly weaker IT demand will make it difficult to maintain 2016 profits at the level of the previous year’s,” Samsung said in statement, saying “challenging business conditions” would remain for the current quarter and last throughout the first half of this year.

The world’s number 1 maker of smartphones device and memory chips said that its last quearter operating profit was recorded about 6.1 trillion won equivalent to $5.05 billion, matching its guidance. Revenue rose up to 1.1 percent equivalent to $53.3 trillion won, slightly than 53 trillion target.

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