As Apple Stares At First Revenue Drop In A Decade, Samsung Predicts Stellar 10-Fold Q1 Profits Amid Surging Chip Prices
Portfolio Pulse from Benzinga Neuro
Samsung Electronics (OTC:SSNLF) forecasts a significant first-quarter operating profit increase, expecting a 931% jump from the previous year due to recovering chip prices. This contrasts with Apple Inc. (NASDAQ:AAPL), which anticipates its first revenue drop in a decade, attributed to declining iPhone sales and challenges in China. Despite positive guidance, Samsung shares fell by 1.3%, with investors awaiting further details on its high-end memory chip business. The rise in chip prices, driven by demand for AI applications, has boosted Samsung's shares by 34% over the past year.
April 05, 2024 | 10:32 am
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NEGATIVE IMPACT
Apple Inc. expects a revenue drop for the first time in a decade, attributed to declining iPhone sales and challenges in China.
Apple's anticipated revenue drop is a significant concern, marking a notable shift in the company's decade-long growth trajectory. The decline in iPhone sales and geopolitical challenges in China are key factors contributing to this outlook.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 90
POSITIVE IMPACT
Samsung Electronics forecasts a 931% increase in Q1 operating profit due to recovering chip prices, despite a 1.3% share price drop amid broader market decline.
Samsung's significant profit forecast increase is a strong positive signal, but the short-term share price drop reflects market caution. The long-term outlook remains positive, especially with the demand for AI applications driving chip prices up.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90