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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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
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