Samsung expects Q2 profit fall over pandemic

Samsung Electronics is warning of a plunge in profit as sales of smartphones, gadgets and TVs take a dive.

The company said Wednesday (April 29) it expects that slump in the current quarter even though its business making chips for computers and servers is soaring.

That's thanks to a surge in demand as people are ordered to work from home.

Samsung posted operating profit at 3% from January to March on Wednesday.

But that reflects a time before the current crisis went global and a hunger for chips right now may not be enough to avoid a hit to its Q2 profits.

Streaming services, online shopping as well as cloud applications tied to remote working and online education have meant a rise in demand from data centers for Samsung's chips.

But in Wednesday statements Samsung joined other tech giants in warning of uncertainty over how the industry may suffer for the rest of the year.

Consumers wary of a slowdown are putting off purchases of non-essential electronics like Samsung's popular smartphones and televisions.

That's depsite Samsung launching a new lineup of phones in February.

The company warned as stores remain shut and the market shrinks it sees handset demand only falling further.