Samsung Electronics expects operating profits of 6.2 trillion won and revenues of 52 trillion won, the company said in its earning guidance.
It is a shocking drop of 60% in operating profits from a year ago, and the company's lowest in ten quarters. It is also a decline of 42.6% from the previous quarter.
Revenue is expected to suffer a drop of 14.1% from a year ago and 12.3% lower than the previous quarter.
The downturn in the global memory semiconductor market is the main cause, which was further exacerbated by declining prices of display panels.
Signs of the downturn in chips was first seen in last year's fourth quarter profits.
Market consensus in South Korea was previously some 9 trillion won, but the company warned on March 26 that profits would be lower than expected.
Samsung enjoyed an up-cycle in memory chips for the past two years that helped it enjoy record profits, which saw its peak in the third quarter of last year.
But analysts say for this year the company will have to endure a down-cycle. They cautiously predict demand will recover around the end of the year.
Now the pressure will be on the mobile division, which launched the Galaxy S10 earlier this year, to protect profits from further declining in the second quarter. The 5G version of the smartphone began to be sold in South Korea on Wednesday.
The firm's mobile boss also cautiously said Samsung is seeing a recovery in sales in China, where it had declined in smartphone market share against local rivals in recent years.
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