Samsung Electronics estimates that profitability in Q3 would decline again after its bottom-line was hit by a third consecutive period of weak demand and falling chips prices.
The company predicted operating profit would drop 77.9 per cent to KRW2.4 trillion ($1.8 billion) and revenue 12.7 per cent to KRW67 trillion (over $49.73 billion)
Net profit in Q2 fell 86 per cent to KRW1.6 trillion and revenue 22 per cent to KRW60 trillion.
Bloomberg suggested the “more modest” profit decline predicted for Q3 compared may indicate a global chip market slump is bottoming out.
Samsung cut chip production in Q2, following moves by SK Hynix and Micron Technology to reduce a growing oversupply.
The global consumer electronics sector has been impacted by weak demand during economic uncertainties and rising inflation.
Contract chipmaker Taiwan Semiconductor Manufacturing Company last week booked a double-digit drop in revenue for Q3.
Samsung is scheduled to report full Q3 earnings later this month.
