Samsung expects profits to fall

Samsung expects profits to fall

Samsung expects quarterly profit to fall over 50%, blames lower demand

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Samsung expects profits to fall

Samsung expects profits to fall

Samsung Electronics said its operating profit for the three months ended September could collapse by more than half from a year ago.

This figure for the third quarter is expected to be 7.7 trillion Korean won ($ 6.43 billion), down 56.17% from a year ago, when the world’s largest smartphone manufacturer reported profit of 17.57 trillion won.. However, the aforementioned forecast will be slightly higher than analysts’ expectations..

The company said it had 62 trillion won of consolidated sales in three months, down 5.3% from last year’s figures..

Samsung shares jump 2.41% on Tuesday.

Like its competitors, the South Korean tech giant has struggled in an environment where price and demand for electronic chips have been low for almost a year due to stock adjustments and oversupply.. Memory components used in smartphones and data centers make up Samsung’s main profitable business.

According to senior analyst at CLSA Ran Sanjev, the market situation is currently recovering.

«Demand for memory chips is growing from companies producing personal computers, smartphones and building data centers. We think 2020 will be a really good year for Samsung», – she added.

One of the corporation’s key products, DRAM is used to enable computers, smartphones and tablets to run multiple applications at the same time, while NAND flash is a storage component that stores data..

Samsung expects profits to fall