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Samsung Electronics Co Ltd said on Wednesday that the coronavirus pandemic would hurt sales of smartphones and consumer electronics this year, while demand from data centres would fuel a recovery in memory chip markets.
The company’s Chief Executive, Kim Ki-nam, said that the coronavirus and US-China trade disputes were casting a shadow over the outlook for the South Korean tech giant, whose Galaxy smartphones vie with Apple’s iPhones for global dominance.
The global smartphone market was expected to turn to growth this year, but with virus showing signs of being prolonged, the smartphone market is contracting. “But 5G smartphone demand is expected to rise,” Koh Dong-jin, President of Samsung’s mobile and network business, told the annual general meeting in Seoul.
While the smartphone market would shrink, Kim said that the chip market — which makes up about half of Samsung’s operating profit — will see demand growth after a slump last year.
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