Samsung predicts 56pc drop in 2Q profit on weak chip market

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Samsung predicts 56pc drop in 2Q profit on weak chip market

Samsung predicts 56pc drop in 2Q profit on weak chip market

Samsung predicts 56pc drop in 2Q profit on weak chip market.Samsung Electronics Co. announced Friday that its fourth-quarter operating profit had probably dropped more than 56 percent from last year, in a weak memory chip market.

The South Korean tech giant has estimated operating profit at 6.5 billion won ($ 5.5 billion) for the April-June quarter, which would represent a 56.3 percent drop by compared to the same period last year.

The company said its revenue would likely fall by 4 pc to 56 trillion won ($ 48 billion), but did not detail its performance by division. He will release a final report on the results later this month.

Analysts say falling prices for DRAM and NAND memory chips affect the company’s earnings, which saw its operating profits drop more than 60 percent in the first quarter compared to last year.

Samsung predicts 56pc drop in 2Q profit and etc

EE sanctions. UU The Chinese technology giant Huawei may also have contributed to Samsung’s profit problems by reducing its chip shipments and further lowering its price.

Samsung, the world’s largest manufacturer of semiconductors and smartphones and a major producer of display screens, is also preparing for the impact of tighter Japanese controls on high-tech materials exports used in semiconductors and screens.

The Seoul government regards the Japanese measures, which came into effect on Thursday, as retaliation for the South Korean courts’ decisions urging Japanese companies to compensate South Korean plaintiffs for forced labor during the Second World War. World War. Seoul is considering filing a complaint with the World Trade Organization.

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