Samsung predicts profit decline amid weak chip market

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Samsung Galaxy Note10+

Samsung Electronics has predicted its operating profit for the last quarter will fall by more than 56% from a year earlier amid sluggish global demand for computer chips.

The South Korean technology giant on Tuesday estimated an operating profit of 7.7 trillion won ($6.4 billion) for the July-September quarter, which would be a 56.2% drop from the same period last year.

The company says its third quarter revenue likely rose 5.3% from last year to 62 trillion won ($52 billion).

South Korea’s biggest company is suffering from the slowdown in its core industry, though analysts say the demand will likely revive as next-generation networks are rolled out.

Samsung did not provide a detailed account of its performance by division. It’s finalized earnings report is due later this month.

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