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

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Samsung said it expects fourth-quarter profit to decline on weak server chip demand after posting its best operating profit in two years in the third quarter

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.

“Global demand is forecast to increase year on year, but uncertainties are unlikely to ease given the possibility of additional waves of the pandemic,” Ben Suh, Samsung’s executive vice president of investor relations, said in an earnings call. Samsung has applied for its U.S. license to export chips to Huawei and still waiting for the result, Han said.

Samsung’s smartphone shipments in the current quarter are expected to drop about 5% 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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