Samsung Electronics reported a worse-than-expected 32% drop in quarterly operating profit on Friday as the economic slowdown cut demand for electronic devices and the memory chips that go into them.
Samsung’s memory chip deliveries likely fell short of already lowered expectations and prices could fall further this quarter, according to analysts, as customers are reacting to rising inflationrising interest rates and the impact of the Russian invasion of Ukraine.
Samsung, the world’s leading manufacturer of memory chipssmartphones and TVs, is a barometer of global consumer demand and its disappointing preliminary results have added to a flurry of earnings downgrades and gloomy forecasts.
Estimated profit fell to 10.8 trillion won (about $7.67 billion) in the July-September period, the first year-on-year decline in nearly three years, from 15.8 trillion won a year earlier, the company said. in a release of preliminary results.
The result was 8.5% lower than the 11.8 trillion won estimated by Refinitiv.
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