Samsung Electronics flags smaller-than-expected profit fall as chip market bottoms out

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Samsung Electronics Co Ltd on Wednesday flagged a smaller-than-expec...

) on Wednesday flagged a smaller-than-expected fall in quarterly operating profit, indicating that memory chip prices bottomed out quicker than analysts had anticipated, strengthening hopes of a recovery.

The world’s biggest memory chip maker has struggled since late 2018 as a weak global economy curbed spending by data center customers and rising inventories of memory chips squeezed prices, ending a two-year industry boom. Operating profit in the quarter ended Dec. 31 likely fell 34% to 7.1 trillion won from 10.8 trillion won a year earlier, Samsung said. That came in ahead of the 6.5 trillion won forecast from Refinitiv SmartEstimate.Annual profit declined 53% to 27.7 trillion won, its lowest since 2015 and the steepest annual profit percentage drop in a decade.The company’s shares have rallied more than 40% in the past 12 months, outpacing the broader market’s 8% gain.

Demand recovery for servers and mobile devices helped drive chip sales, while sales of premium phones such as the Galaxy Note 10 and Galaxy Fold lifted mobile earnings, the person said, declining to be identified as the information was not public.

 

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it shifted its strategy away from first marketed half ready products to more quality as earlier. samsung yes?

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