Samsung Electronics sees profit decline on weaker chip demand after strong third-quarter earnings

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Samsung Electronics Co Ltd said on Thursday it expects profits to fall in the current quarter after posting its highest operating profit in two ...

Samsung Electronics Co Ltd said on Thursday it expects profits to fall in the current quarter after posting its highest operating profit in two years for the third quarter.

The world's top maker of smartphones and memory chips posted a 59per cent jump in operating profit in the July-September quarter, on the back of its second-largest quarterly smartphone profit ever at 4.45 trillion won, the company said.A near 50per cent jump in sales of smartphones likely reflects gains in Samsung's share of the market as U.S. restrictions hit Chinese rival Huawei Technologies Co Ltd , analysts said.Samsung said its chip profit surged 82per cent to 5.

But in the current quarter, overall memory chip prices are expected to remain weak as oversupply and a lack of recovery in server demand continues, said Avril Wu, analyst at researcher TrendForce.

 

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