Samsung disappoints with a 15 percent fall in first-quarter earnings

Samsung disappoints with a 15 percent fall in first-quarter earnings

South Korean tech giant has disappointed their investors as they have reported a 15 percent fall in first-quarter earnings.

The company suffered from a steep drop in margins. Samsung added that they expect to continue to suffer price pressure in the near term.

Samsung is also unlikely to recover in the coming months as the outlook for the April-June period remains grim. The prices of the DRAM chips are unlikely to recover in the near future.

Seo Jung-ho, fund manager at Daehan Investment Trust Management spoke on Samsung: “The strength of an expected rebound later in the year still depends on the strength of the demand stemming from Windows Vista during the holiday shopping season near the year-end.”

Lee Keon-hyok vice president of investor relations at Samsung had this to say: “DRAM and NAND prices fell so sharply that they offset our cost reduction efforts.”