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

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Samsung Electronics Co Ltd said on Thursday it expects fourth-quarter profit to fall due to weak server chip demand and rising smartphone ...

Samsung Electronics Co Ltd said on Thursday it expects fourth-quarter profit to fall due to weak server chip demand and rising smartphone competition, after posting its best quarterly operating profit in two years in the third quarter.

An employee using his mobile phone walks past the logo of Samsung Electronics at its office building in Seoul, South Korea, August 25, 2017. REUTERS/Kim Hong-Ji/FilesSEOUL: Samsung Electronics Co Ltd said on Thursday it expects fourth-quarter profit to fall due to weak server chip demand and rising smartphone competition, after posting its best quarterly operating profit in two years in 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 highest quarterly smartphone profit since 2014 at 4.45 trillion won .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.

Samsung's display business, which counts Apple Inc among its customers, said its operating profit fell from a year earlier because of delays of new model launches by a major customer.Operating profit in the third quarter was 12.35 trillion won from 7.78 trillion won a year earlier, in line with the company's estimate earlier this month.

Samsung's smartphone shipments in the current quarter are expected to drop about 5per cent compared to the previous period due to competition from Apple's newest iPhone 12 and a lack of new Samsung flagship models, analysts said.

 

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