Samsung Elec expects second-quarter profit fall as virus hits sales of smartphones, TVs

SEOUL (Reuters) – Samsung Electronics Co Ltd said on Wednesday it expected profit to decline in the current quarter due to a coronavirus-related slump in sales of smartphones and TVs, although the chip business would remain solid.

FILE PHOTO: People wears masks in front a Samsung Store at a main shopping area as the country is hit by an outbreak of the new coronavirus in downtown Shanghai, China February 21, 2020. REUTERS/Aly Song

Samsung said its operating profit rose 3% in the January-March period, in line with an earlier estimate, as work-from-home orders boosted demand for server and computer chips.

The South Korean conglomerate joined other tech giants in warning of uncertainty over how long the coronavirus will continue to hurt the industry.

“In the second half, uncertainties driven by COVID-19 will persist as the duration and impact of the pandemic remain unknown,” Samsung said in a statement.

Other chipmakers

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Samsung Elec sees second-qiarter profit fall as virus hits sales of smartphones, TVs

FILE PHOTO: People wears masks in front a Samsung Store at a main shopping area as the country is hit by an outbreak of the new coronavirus in downtown Shanghai, China February 21, 2020. REUTERS/Aly Song

SEOUL (Reuters) – Samsung Electronics Co Ltd said on Wednesday it expected its profit to decline in the current quarter, as strength in the chip business would be offset by a sales slump in smartphones and TVs.

Samsung said its first-quarter operating profit rose 3% in the January-March period, in line with an earlier estimate, as the stay-at-home trend due to the COVID-19 pandemic cushioned the virus blow.

The South Korean tech conglomerate’s chip business is benefiting from demand for servers and computers as stay-at-home orders force millions of people around the world to convert their homes into offices.

But sales of TVs and smartphones have slowed as recession-wary consumers postpone purchases of non-essential

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Alphabet warns of difficult quarter as consumers Google pandemic, not shopping

(Reuters) – Alphabet Inc (GOOGL.O) on Tuesday beat analysts’ estimate for quarterly revenue as its Google unit posted double-digit advertising growth despite the economic slowdown from the novel coronavirus.

FILE PHOTO: The logo of Google is seen in Davos, Switzerland Januar 20, 2020. Picture taken January 20, 2020. REUTERS/Arnd Wiegmann

Shares of Alphabet rose 4% to $1,282 following the after-hours release of financial results. Alphabet shares were down about 8% this year at Tuesday’s close.

A booming economy and rising internet usage have driven Google to record revenues in the last few years. But the virus has split those two trends, with consumer spending now plunging and reliance on internet services surging.

Alphabet Chief Financial Officer Ruth Porat told analysts on Tuesday that while users were searching more, they were looking up less commercial topics and advertisers were cutting spending.

“As of today, we anticipate the second quarter

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Uber tech chief Thuan Pham steps down

FILE PHOTO: Uber’s logo is pictured at its office in Bogota, Colombia, December 12, 2019. Picture taken December 12, 2019. REUTERS/Luisa Gonzalez

(Reuters) – Uber Technologies Inc’s (UBER.N) Chief Technology Officer Thuan Pham has resigned, effective May 16, the ride-hailing company said in a regulatory filing bit.ly/2SiLDZB on Tuesday.

Pham, who joined Uber in 2013, is among the senior-most executives at the company. Pham’s departure is coming at a crucial time for Uber as stay-at-home orders around the world severely curtail demand for its services.

Uber is also discussing plans to cut around 20% of its staff because of the pandemic, The Information reported on Tuesday. (bit.ly/2yO01Cr)

The layoffs could result in more than 5,400 of Uber’s 27,000 employees losing their jobs, according to the report.

The staff reductions have not been finalized, but could be announced in stages in the coming weeks, the report said.

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