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Samsung Elec posts 1st qtly earnings drop in nearly 3 years on demand slump

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SEOUL -Samsung Electronics Co Ltd flagged a worse-than-expected 32 per cent drop in quarterly operating earnings on Friday, as demand for electronic devices and the memory chips that power them shrank due to an economic downturn. The world's largest memory-chip and smartphone maker estimated its profit fell

SEOUL -Samsung Electronics Co Ltd flagged a worse-than-expected 32 per cent drop in quarterly operating earnings on Friday, as demand for electronic devices and the memory chips that power them shrank due to an economic downturn.

This has led memory chip buyers such as smartphone and PC makers to reduce purchases and use up existing inventory, driving down shipments and ushering in an industry downcycle. Samsung is currently not discussing a memory chip production cut, an executive told reporters in the United States on Wednesday, according to Yonhap news agency.

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