Samsung predicts 56% drop in 2Q profit on weak chip market

SEOUL, South Korea — Samsung Electronics Co. says its operating profit for the last quarter likely fell more than 56% from a year earlier amid a weak market for memory chips.

The South Korean tech giant on Friday estimated an operating profit of 6.5 trillion won ($5.5 billion) for the April-June quarter, which would represent a 56.3% drop from the same period last year.

The company says revenue likely fell 4% to 56 trillion won ($48 billion), but did not provide a detailed account of its performance by business division. It will release a finalized earnings report later this month.

Analysts say falling prices of DRAM and NAND memory chips are eating into the earnings of the company, which saw its operating profit during the first quarter drop more than 60% from last year.

You may also interested in

Aid groups warn of crisis as Mongolia hit by...

Dec 21, 2016

Another unusually harsh winter in Mongolia that's decimating livestock and sending temperatures to...

Asian stocks markets retreat after Wall Street...

Dec 23, 2016

Most Asian stock markets have declined in thin trading ahead of the Christmas holiday after Wall...

Global markets mixed after Wall Street loss

Dec 23, 2016

Asian markets are mostly lower while Europe has gained in early trading ahead of the Christmas...

China aircraft carrier capabilities tested on...

Jan 14, 2017

China's sole aircraft carrier has returned home following a three-week cruise during which its...

China state media call Trump's Taiwan strategy...

Jan 16, 2017

China's state-run media says President-elect Donald Trump "speaks like a rookie" and called his...

Subscribe To Our Newsletter