From CNET: Samsung's first-quarter revenue and profits soared, but it warned of tougher times ahead in the mobile market -- including a slowdown in demand for its newest phones, the Galaxy S9 and S9 Plus.
The South Korean electronics giant on Wednesday reported a 20 percent jump in revenue and a 58 percent rise in operating profits as it benefited from strong demand for its memory chips, which are used in everything from phones to servers. Samsung also got a boost from its flagship smartphones, which hit the market in mid-March.
But Samsung warned that second-quarter profits in its mobile business should decline sequentially "due to stagnant sales of flagship models amid weak demand and an increase in marketing expenses." It warned that its display business -- which counts Apple among its customers -- will struggle, at least in the June quarter. And it said while memory chip demand has been strong in servers, flash memory sales are being hurt by a smartphone slowdown.
While the memory business should remain strong in the second quarter, Samsung warned that "generating overall earnings growth across the company will be a challenge due to weakness in the display panel segment and a decline in profitability in the mobile business amid rising competition in the high-end segment."
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