Samsung Electronics’ third-quarter profit is expected to drop 80% from a year earlier as the effects of an ongoing global chip glut drive losses in what is normally the South Korean tech giant’s cash cow business.
The world’s biggest maker of memory chips, smartphones and televisions will announce its third-quarter preliminary earnings results on Wednesday.
Operating profit likely fell to 2.1 trillion won ($1.56 billion) in the July-September quarter, according to a LSEG SmartEstimate from 19 analysts, weighted toward those who are more consistently accurate.
It compares with an operating profit of 10.85 trillion won in the September quarter last year.
The reversal is because its chip division, traditionally its biggest earner, likely reported quarterly losses of between 3 trillion and 4 trillion won after rock-bottom memory chip prices did not recover as fast as some had predicted.Source: reuters
