Technology giant Samsung has warned of a 32% slide in its profits as demand for electronic devices and the memory chips that power them shrinks due to the global economic slowdown.
The South Korean company estimates its quarterly operating profit was about 10.8tn won ($7.6bn; £6.9bn).
On Thursday, US chip maker Advanced Micro Devices (AMD) also said it was hit by a fall in demand for computers.
It comes as people cut back on purchases as the cost of living rises.
Samsung’s profits from its microprocessor making business suffered as the global price of memory chips plunged due to weakening demand for consumer electronics.
The estimates, which are for the three months to the end of September, mark Samsung’s first year-on-year decline in quarterly profits in almost three years.
Samsung is due to release its earnings on 27 October.
Meanwhile, AMD’s revenue estimates for the third quarter were about a $1bn (£895.6m) less than previously forecast, signalling the slump in demand for chips could be much worse than expected.
“The PC [personal computer] market weakened significantly in the quarter,” AMD’s chief executive Lisa Su said.
Weak economic conditions had driven demand lower than expected, she added.
AMD’s shares fell by 4.5% in after-hours trading in New York.
“This is going to be a common theme for companies in the second half of 2022 due to weakening consumer demand,” Neil Shah from market analysis firm Counterpoint Research told the news.
Sales of electronic devices have been hit as rising inflation, higher interest rates and the impact of Russia’s invasion of Ukraine deter people from making purchases.
This has led firms that buy memory chips, such as manufacturers of smartphones and personal computers, to cut their purchases as they use up their existing stocks.
Technology industry analysts have forecast that memory chip prices will continue to plunge in the next three months as sales of smartphones continue to slide, with demand not expected to recover until early next year.
Lebanon arrests 185 suspected of spying for Israel
Lebanon has arrested 185 people suspected of collaborating with Israel since Lebanon's economic collapse three years ago, which left many Lebanese desperate for cash, two security sources told AFP on Wednesday. That number has jumped significantly from a previous...
Powerball winning numbers for Wednesday, Dec. 7, 2022; jackpot $100 million
The Powerball lottery selected winning numbers in its Wednesday, Dec. 7, 2022, drawing for a jackpot estimated at $100 million. The numbers are 6-28-44-59-61 Powerball 21 Power Play 2x. The Classic Lotto numbers are 8-22-27-28-45-46 Kicker 842388. The jackpot for...
Our Businesses
Businesses We Endorse
Submit your event
We will be happy to share your events. Please email us the details and pictures at publish@profilenewsohio.com
Address
P.O. Box: 311001 Independance, Ohio, 44131
Call Us
+1 (216) 269 3272
Email Us
Publish@profilenewsohio.com