On March 18th, according to foreign media reports, Samsung Electronics said on Wednesday that the spread of the new coronavirus epidemic will hurt the sales of smartphones and consumer electronics this year. At the same time, the demand from the data center business will promote the recovery of the memory chip market.

At Samsung Electronics ’annual shareholder meeting in Seoul, the company ’s CEO Kim Kinan said that the new coronavirus epidemic and the US-China trade dispute overshadowed Samsung Electronics’ prospects. The company's Galaxy smartphones and Apple's iPhones are fiercely competing for global market dominance.

Gao Dongzhen, president of the company's mobile and network business, said at the conference, 'It was originally expected that the global smartphone market will turn to growth this year, but as the new coronavirus epidemic continues to spread, the smartphone market will shrink. However, it is expected The demand for 5G smartphones will rise. '

Although the smartphone market will shrink, Jin Jinan said that after a sharp decline last year due to oversupply and trade tensions between the United States and China, the demand for the chip market will increase this year. Half of Samsung Electronics ’profits come from its chip business.

Other chip manufacturers, such as Broadcom, have cut or cancelled their original sales targets due to business interruptions caused by the outbreak of the new coronavirus. But Samsung Electronics said it expects companies engaged in data center business to invest, and new opportunities in areas such as 5G wireless networks and automobiles will drive the growth of chip sales in 2020.

At the same time, Jin Jinan said that it is expected that chip manufacturers will focus on upgrading the manufacturing process this year instead of expanding production capacity, so chip supply will be limited.

Jin Xianshuo, head of Samsung Electronics ’consumer electronics business, said it is too early to predict what impact the new coronavirus epidemic will have on consumer spending.

He said, 'We had expected the consumer electronics market to grow slightly this year, but with the rapid spread of the new coronavirus epidemic, uncertainty is rapidly increasing and it is difficult to predict the future now.'

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