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China’s Slowdown Unlikely To Impact Samsung

Investors showed very less confidence in Samsung recently on January 3, 2019. This is due to the revision that went downside in the first quarter of the guidance in Apple’s turbid prices of the stocks of its suppliers. On January 2nd, 2019 Apple had to lower down the revenue guidance as well as the gross margin. Earlier, the figures had been quite different. The company had accused other factors for this condition. The factors include the vulnerable state of Chinese economy and the revenue for iPhone that is way below that what had been expected especially in Greater China etc. The analysts have informed that the revenue for Apple in that part of China is almost 15%.

Head of the global strategy and research institute in South Korea Kiwoom Securities, Daniel Yoo felt that the downward in economy in China would not have as much impact on Samsung as it had on iPhone makers. He said his analysis through a mail. Samsung is the world’s best smartphone makers in terms of share market. It holds even less than 1% of the smartphone in China. Therefore, the exposure of Samsung is less in the largest economy of Asia. Thus, Samsung’s position as a dominant one in the business would not be affected by any chance.

Samsung also has a large business in the production market of memory cards that are inserted in smartphone and in several data centers. Samsung has also declared an increase in 21% profit in its latest income. Recent data that has come out of Beijing has been really tender. The different activities in factories in small, medium or huge organizations have become slow in December. It can lead to a major slowdown in the economy besides the already existing trade conflicts in United States. In fact, the slowdown of economy in China can as well create a bad impact on other companies in the business.

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Alice Martin

Having done MBA in Finance and with over one decade of experience in the field of business, Alice leaves no chance to use his expertise when it comes to Business section. She makes sure that Business news is up-to-date with correct numbers and figures. In her leisure time, Alice loves to play and watch movies with her two-year-old son.

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