Samsung Electronics said that the spread of the Corona virus will harm smart phone and electronics sales to individuals this year, while demand from data centers will boost recovery in the memory chip markets.
According to Reuters, CEO Kim Ki Nam said that the Corona virus and the US-China trade row are overshadowing the expectations of the South Korean tech giant, whose Galaxy phones are competing with Apple's iPhone to dominate the market.
Koh Dongjin, head of mobile and network activities, said at the company's annual meeting in Seoul that the global smart phone market was expected to shift to growth this year, but in the shadow of the virus that is showing signs of continuing for so long the market is shrinking. However, the demand for smartphones supporting the fifth generation is expected to increase.
Kim said that although the smart phone market may shrink, the chip market, which accounts for more than half of the operating profits of Samsung, will see growth in demand after a slowdown in the past year, exacerbated by excess supply in the market and US-China trade tensions.
At the same time, Kim predicted, chip producers would focus on modernizing production rather than expanding energy this year, which would reduce supply.
