Samsung Electronics Co Ltd’s (005930.KS) quarterly profit will likely plunge 58% to its lowest in six years as a global economic downturn saps demand for electronic devices and clouds the outlook for the memory chip industry.
With consumers and businesses reducing spending and investment in the face of high inflation and climbing interest rates, smartphone makers and other clients held back memory chip orders, while smartphones sold for less as demand suffered, analysts said.
Samsung, as the world’s biggest maker of memory chips, smartphones and TVs, is a bellwether for global consumption trends. It is expected to announce preliminary results on Friday and full results later this month.
Operating profit for Asia’s fourth most valuable listed company likely fell to 5.9 trillion won ($4.62 billion) in the October-December quarter, according to a Refinitiv SmartEstimate from 21 analysts.
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