On Wednesday Samsung said that their profits for three months that ended June. Which, however, more than halved from a year before due to the falling price of memory chips.
From the same period a year ago, operating profit for the quarter came in for 6.6 trillion Korea won down 55.61%. According to the source, the world’s largest smartphone maker said.
The integrated revenue was at 56.13 trillion won.
In a news release, Samsung said, “The weakness and price declines in the memory chip market persisted as effects of inventory adjustments by major data center customers in the previous quarters continued, despite a limited recovery in demand.” According to the sources.
However, the numbers provided were better than the guidance the company provided before this month. In the morning trade, Samsung shares fell to 2.58%.
According to the sources Samsung mentioned its semiconductor business posted consolidated revenue of 16.09 trillion won. As well as an operating profit of 3.4 trillion won for the quarter, which was down to 71% last year.
Despite the weak market conditions the company says its memory unit saw increased demand.
According to the sources, for the second half of the year, Samsung said, “demand is expected to grow although the Company sees volatility in the overall industry due to increased external insecurities.”
One of Samsung’s major profit-making business is earned with memory components, that are used in mobile handsets and enterprise servers.
This is the second consecutive quarter when South Korea’s giant tech operating profit more than halved from the same period a year ago.
In the recent there months that ended March, Samsung’s profits fell about sixty percent on-year to 6.2 trillion Korean won.
Samsung’s executive said on the earnings call, “The visibility is low. However, our executives and the relevant business divisions are dedicating their utmost efforts and deriving solutions to reduce any potential negative impact.”