Samsung Electronics expects its worst operating-profit drop in four years, as a result of a glut in memory chips, slowing panel sales and lower margin in in smartphone sales.

Operating income fell 60 percent to about 6.2 trillion won ($5.5 billion) in the three months ended March, according to preliminary results released Friday from the South Korea-based company.

Sales for the quarter were 52 trillion won. Samsung won’t provide net income or break out divisional performance until it releases final results later this month.

Samsung issued a warning last month that its results would be short of estimates, reflecting slower orders from data center owners and handset makers. That’s pushed down prices for both DRAM and NAND memory.

Many investors are looking ahead to an earnings recovery as a result of an improvement in chip prices, S10, 5G and foldable-phone sales in the second half of the year.

Samsung supplies memory chips and screens for its own smartphones and Apple, and server chips for cloud companies such as Amazon.

Apple has cut its sales forecast earlier, and the Chinese economy has been slowing as well.