Samsung profit plunges in first drop since 2019 as chipmakers feel bite

Samsung profit plunges in first drop since 2019 as chipmakers feel bite

• Samsung forecast on Friday its operating profit likely plunged 32% in the third quarter of the year as weaker memory pricing and demand hit the technology giant.
• The forecast profit fall adds further concerns about the chip sector which is facing softer demand amid a weaker global macroeconomic environment.
• However, one analyst said that memory cycle is “bottoming” and prices could rise again next year which will help Samsung.

Samsung said Friday its operating profit likely plunged 32% in the third quarter of the year as weaker memory pricing and demand hit the technology giant.

The South Korean firm said it expects operating profit to be between 10.7 trillion ($7.57 billion) and 10.9 trillion South Korean won. It is the first decline in operating profit since 2019.

Samsung reported a revenue rise of between 75 trillion and 77 trillion Korean won, a 1.3% to 4% year-on-year rise.

Samsung’s chip business, which includes selling chips for laptops, servers and storage, as well as manufacturing semiconductors, accounts for 70% of its profits.

Samsung profit plunges in Q3 as chipmakers feel bite (cnbc.com)