Samsung flags profit decline as chip market weakens

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SEOUL -- Samsung Electronics said Friday it expected operating profit to tumble 56 percent for the second quarter of this year in the face of a weakening chip market.

Operating profit for the April to June period is forecast to reach around 6.5 trillion won , down 56 percent from a year earlier, the world's largest maker of smartphones and memory chips said in a statement.

It has enjoyed record profits in recent years despite a series of setbacks, including the jailing of its de facto chief. Samsung launched its top-end S10 5G smartphone earlier this year, after South Korea won the global race to commercially launch the world's first nationwide 5G network. While Samsung's device was not the first folding handset, the smartphone giant was expected to help spark demand and potentially revive a sector that has been struggling for new innovations.

 

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