The data will be announced tomorrow, October 11
Samsung Electronics’ profit in the third quarter is expected to fall by 80% compared to the same period a year earlier, as reported by Reuters.
The world’s largest maker of memory chips, smartphones, and TVs will announce preliminary third-quarter earnings results on Wednesday. Operating profit is expected to decline to $1.56 billion, according to LSEG SmartEstimate and 19 analysts. By comparison, operating profit in the September quarter last year was $8 billion.
Samsung’s chip unit, traditionally Samsung’s biggest source of revenue, is set to report a quarterly loss of $2.2 billion to $3 billion after memory chip prices hit rock bottom but failed to recover as quickly as forecast. Analysts say Samsung’s chip production cuts have also taken a toll.
The largest drop in Samsung’s profits by five times
After first announcing production cuts in April, analysts said Samsung cut production in the third quarter to reduce inventories and cope with a chip glut that has led to the industry’s worst downturn in decades.
Smartphone and personal computer makers are holding back on buying new memory chips, preferring to use existing stock for a few months due to fears of an economic downturn.
Samsung’s mobile business is likely to report an operating profit of $2.2 billion, according to the average forecast of five analysts, as the company launched its premium foldable smartphones during the quarter, boosting sales despite a sluggish global smartphone market.
