Smartphone giant, Samsung, has posted a sharp drop in first quarter profits, as falling chip prices and slowing demand for display panels hit its earnings.

But the South Korean company still posted a net profit of £3.3bn ($4.3bn) for the three months to March. This was down 57 per cent year-on-year and was in line with forecasts, as reported by the BBC.

Looking ahead to the second quarter, the company expects to see some improvement in the memory chip market, as demand is likely to increase in a number of major areas, including mobile phones, but it predicts prices will continue to fall.

Simon Gardner, sales manager at Stonehouse-based Lister Unified Communications, commented: "With handsets getting more expensive, customers are deciding to hang onto them as long as possible so therefore handsets manufacturers are not selling so many."

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