Just as LG has multiple divisions, Samsung is heavily invested in DRAM, NAND and display technologies which they supply to companies such as Apple. "While we anticipated some challenges in key emerging markets", reads a letter from Cook to investors, "we did not foresee the magnitude of the economic deceleration, particularly in Greater China". It is the lowest operating profit figure since the first quarter of 2017. Samsung also noted that demand for DRAM from datacenters was lower than expected, this makes up 30% of their DRAM business. It expects fourth-quarter sales to drop nearly 11 per cent from a year ago, to 59 trillion won ($52.4 billion). This is down 38.5 percent from 15.1 trillion won posted a quarter earlier. Samsung also acknowledged that its own smartphone business is struggling in a "stagnant and fiercely competitive market", CNBC wrote.
Smartphone vendors shipped 355.2 million units during the third quarter of 2018, resulting in a year-on-year decline of 6 per cent, according to Massachusetts-based International Data Corporation (IDC).
"We expect earnings to remain subdued in the first quarter of 2019 due to hard conditions for the memory business", Samsung said in its filing.More news: NBA looking into Patrick McCaw signing
"Samsung Electronics has already delayed the shipment of memory chips, partially due to sluggish market demand in the final quarter of 2018", said Doh Hyun-woo, a tech analyst at NH Securities and Investment.
"If Apple's not selling, then is it Samsung that's selling well?"
"Apple's iPhones have not been selling well in China".More news: Former Miss SA Demi-Leigh engaged to American sport star Tim Tebow
A man tries out a Samsung Electronics' Galaxy Note 9 at its store in Seoul, South Korea Jan. 7, 2019.
Among the most China-exposed industries - jeopardised by US President Donald Trump's trade war along with an impending slowdown - tech stocks that once seemed unassailable have been hit hard over the past few months, with the Nasdaq falling 17 per cent since its late August peak.
LG held a 3 percent share of the global smartphone market in the second quarter of past year, showed latest data from market tracker Counterpoint Research. -China trade war, an associated slowdown in the Chinese economy, increasing competition in the phone market from emerging players like Huawei, and the fact that Apple products are prohibitively priced for some global markets.More news: Migrant ordeal comes to an end: Stranded migrants finally land in Malta