Samsung Electronics' first-quarter profits likely fell almost 60 percent from a year ago due to weakness in its display and memory business.
The South Korean tech giant said on Friday its operating profit for the three months ended March would be around 6.2 trillion Korean won ($5.5 billion), a sharp decline from the 15.64 trillion won seen in the first quarter of 2018.
Friday's number also missed analysts' estimate of 6.8 trillion won.
Samsung is set to release full earnings for the first quarter later this month.
Samsung shares dipped 0.21 on Friday, tracking behind the Korean benchmark Kospi, which closed in positive territory. The relatively neutral reaction in the stock market was likely because investors were already expecting the profit drop for the January-March period, following a warning from Samsung last month.
In a March regulatory filing, the smartphone and chip maker predicted a bigger-than-expected price decline for major memory products — its main profit-making business — due to seasonal weakness in demand. Those components are used in mobile handsets and enterprise servers.
A slowdown in data center companies buying memory chips, as well as flagging smartphone sales have affected demand for Samsung's memory chips, according to analysts. But the company isn't alone — the entire semiconductor sector is undergoing a period of inventory adjustment, experts said.