Samsung profits drop, worst may be over

Samsung Beats Estimates as Demand Picks Up for Note IPhone

Samsung profit tumbles as memory chip business suffers from low demand

Kim Yang-jae, an industry analyst of KTB Investment & Securities, estimated that Samsung's third-quarter operating profits from the IT and Mobile Communications division and the display business would increase to 2.5 trillion won and 1.2 trillion won, respectively, from 1.6 trillion won and 700 billion won in the second quarter.

Kim predicted that Samsung's fourth-quarter earnings would fall back to around 7 trillion won in the fourth quarter and rebound next year.

Samsung's new high-end smartphones, including the Galaxy Note 10 and Galaxy Fold, helped cushion profit declines in the memory business.

Ltd., the world's largest manufacturer of semiconductors and consumer electronics by revenue, said on Tuesday that it expects its operating profit from July to September to plunge by at least 56 percent compared to the same period in 2018.

Samsung, the world's largest producer of mobile phones and smartphone displays, is benefiting from solid demand for its Note10 and for Apple's iPhone 11 Pro, which uses the company's OLED displays.

Samsung has reported that due to the downturn in global memory chip prices, the company is expecting its third-quarter operating profit to have dropped around 56%, but still managed to perform slightly better than analysts forecast.

The South Korean tech giant expected its overall sales to have fallen 5.3 percent on-year to 62 trillion won in the three-month period.

The division posted an operating profit of 2.22 trillion won in the third quarter previous year. Still, the memory chip business has been its most profitable and uncertainties there have lingered because of the ongoing U.S.

Samsung will provide more details about its various businesses when it releases its final figures later this month.

"Samsung has been quick to capitalize on Huawei's [US] problems, working behind the scenes to position itself as a stable alternative in conversations with important retailers and operators", Canalys analyst Ben Stanton said at the time.

While chip prices remained low, shipments had actually increased due to sector jitters.

The company earlier announced that it has sold over 1 million Galaxy Note 10s in South Korea, making it the fastest Samsung smartphone to reach the milestone.

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