Friday, 29 Mar, 2024
  Dhaka
Friday, 29 Mar, 2024
The Daily Post

Samsung quarterly profit set to slump 25%, first decline in nearly 3 years

Staff Reporter

Samsung quarterly profit set to slump 25%, first decline in nearly 3 years

Samsung Electronics Co Ltd‍‍`s third-quarter profit could tumble 25%, the first year-on-year decline in nearly three years, as an economic downturn saps demand for electronic devices and the chips that power them, reports Reuters.

Globally, inflation is on the rise, central banks are aggressively hiking interest rates, fears of recession are growing and uncertainty about the fallout from Russia‍‍`s invasion of Ukraine is ever-present. As a result, businesses and consumers alike have reined in spending.

Operating profit for Samsung, the world‍‍`s biggest memory chip and smartphone maker, likely fell to 11.8 trillion won ($8.3 billion) in the July-September quarter, according to a Refinitiv SmartEstimate from 22 analysts.

"Being the world‍‍`s top memory chip maker, top in TV and mobile OLED displays, and top in smartphone shipments, Samsung is highly sensitive to the economy, with profits easily linked to demand," said Greg Roh, head of research at Hyundai Motor Securities.

It would be the first profit decline since the first quarter of 2020, early on in the pandemic, and the lowest level of quarterly profit since the first quarter of 2021. Until this latest quarter, robust demand for devices as people were forced to stay at home has driven large profit gains for the South Korean tech giant.

 

JH