Samsung Quarterly Profit Set To Slump 25%, First Decline In Nearly Three Years
© Reuters/Kim Hong-ji The Samsung Electronics logo is seen on an office building in Seoul.By Joyce Lee
SEOUL (Reuters) - Samsung Electronics Co Ltd's third-quarter profit may have fallen 25%, the first annual decline in nearly three years, as a slowing economy dampened demand for electronic equipment and power plants.
Globally, inflation is rising, central banks are raising interest rates sharply, the threat of recession is growing, and uncertainty about the consequences of Russia's aggression in Ukraine remains constant. As a result, businesses and consumers have increased their spending.
Samsung, the world's largest maker of memory chips and smartphones, may have seen its profit fall to 11.8 trillion won ($8.3 billion) in the July-September quarter, according to 22 analysts at Refinitive Smart.
"As the world's largest memory chipmaker, the leader in TV and mobile OLED displays, and the leader in smartphone shipments, Samsung is deeply concerned about an economy where revenue is easily tied to demand," said chief technology officer Greg Roh. Hyundai Motor. Warranties.
This is the first decline in revenue since the first quarter of 2020, when the pandemic began, and the lowest quarterly profit since the first quarter of 2021. They were forced to live here, bringing huge profits to the South Korean technology giant.
Samsung's chip business profit rose by a third to 6.8 trillion won, according to an average of seven estimates.
According to TrendForce, prices of some DRAM memory chips, widely used in smartphones and computers, fell 14 percent in the quarter, while prices of NAND flash chips used in data storage fell 8 percent.
Samsung shares, which will report preliminary results at around 8:40 a.m. on Friday, have fallen 30 percent this year. That compares with a 37% decline in the Philadelphia Semiconductor Index.
Profits are also expected to fall, and Samsung's mobile business is expected to fall 17 percent to 2.8 trillion won, although the company's introduction of its pricier new foldable phone this quarter boosted average selling prices.
Dole Investments and Securities analyst Kim Young-ja said Samsung's smartphone shipments fell 11% year-on-year to 62.6 million smartphones after channel distributors cut orders.
Last week, memory chip rival Micron Technology cut investment for next year and warned of tough times ahead.
($1 = 1,421,5600 won)
(Reporting by Joyce Lee; Editing by Edwina Gibbs)
