Samsung expects coronavirus will hit demand for key products

Samsung Electronics Co Ltd said on Tuesday it expects smartphone demand to “drop sharply in most regions” due to the economic downturn caused by the coronavirus pandemic.

It added that there’s a possibility it might delay or cut back its 5G investment in the second quarter.

The tech giant also said it expects a likely fall in overall earnings for the three months ending in June compared to the previous quarter.

It said sales and profits of set products business, which includes smartphones and TVs, are “expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally.”

However, it expects robust demand for its main profit-making memory business as more people work from home.

Samsung’s memory components are used in smartphones and data centres.