Samsung Electronics, the world’s largest technology company has reported a 30% drop in the sales for the first quarter of this year. They also claimed that there is stiff competition in mobile phones and flat-panel TVs have created adverse business conditions.

Robert Yi, Head of investor relations, claimed that Samsung is expecting higher demands of microchips and LCD Panels in the second quarter, as there can be an outage of these parts after the massive earthquake in Japan last month. The production of these parts was hit by the earthquake and there is a possibility of outage.

“The challenging business conditions will persist in the second quarter, affected by lingering worries over the global economy and tight competition in consumer electronics and mobile businesses”, the South Korean company said.

Samsung claimed on Friday that its profits were dropped by 33% and this has been the lowest figures in the last two years. The overall net profit fell by 30% and closed at W on 2,785 billion.

The market analysts however expects that the company sales figures will soar in the next quarters as chip prices recover and Samsung launches new series of tablets and smart-phones.

Samsung needs to become optimistic after having a hard first quarter.