- Samsung est. Q3 profit 10.8 trln won, down 32% y/y
- Memory chip biz conditions worsened rapidly-analyst
- High-end phone demand more resilient-analyst
SEOUL, Oct 7 (Reuters) – Samsung Electronics Co Ltd (005930.KS) flagged a worse-than-expected 32% drop in quarterly operating earnings on Friday, as an economic downturn slashed demand for electronic devices and the memory chips that go in them.
Samsung’s memory chip shipments likely came in below already downgraded expectations and prices could fall further this quarter, analysts said, as customers react to rising inflation, higher interest rates and the impact of Russia’s invasion of Ukraine.
Samsung, the world’s top maker of memory chips, smartphones and televisions, is a bellwether for global consumer demand and its disappointing preliminary results add to a flurry of earnings downgrades and gloomy forecasts.
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Estimated profit fell to 10.8 trillion won ($7.67 billion) in July-September – the first year-on-year decline in nearly three years – from 15.8 trillion won a year earlier, the company said in a preliminary earnings release.
The result was 8.5% below an 11.8 trillion won SmartEstimate from Refinitiv.
Companies and consumers have tightened their belts, with memory chip buyers such as smartphone and PC makers holding off on new purchases and using up existing inventory, driving down shipments and ushering in an industry downcycle.
“Memory chip business is …….