Samsung Electronics, the world's biggest smartphone and memory chip maker¹, reported a slump² in first-quarter net profits Tuesday.

 

三星电子，世界最大的智能手机、存储芯片制造商，周二宣布第一季度净利润下跌。

 

Net profits in the January-March period were 5.04 trillion won ($4.3 billion) -- the lowest since the third quarter of 2016 -- it said, down 56.9 percent year-on-year.

 

The firm is the flagship subsidiary of the giant Samsung Group, by far the biggest of the family-controlled conglomerates³ that dominate business in the world's 11th largest economy, and it is crucial to South Korea's economic health.

 

It has enjoyed record profits in recent years despite a series of setbacks, including a humiliating recall and the jailing of its de facto chief.

 

But now the picture is changing, with chip prices falling as global supply increases and demand weakens.

 

It also has to contend with increasingly tough competition in the smartphone market from Chinese rivals like Huawei -- which in 2017 surpassed Apple to take second place -- offering quality devices at lower prices.

 

"Mobile displays suffered slower demand and intensifying⁴ competition with LTPS LCDs," the company said in a statement.

 

"Large displays also took a hit from a continued decline in LCD panel prices amid weak seasonality⁵."

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