Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 7 (Xinhua)-- Samsung Electronics estimated on Friday that its third-quarter operating profit was 10.8 trillion won (54.108 billion yuan), down 31.7% from a year earlier and the first year-on-year decline in nearly three years. Revenue is expected to grow 2.7% in the third quarter to 76 trillion won (about 380.76 billion yuan). Samsung did not provide data on net profit.

Samsung's third-quarter operating profit was 8.3% below average expectations, according to Yonhap financial data company Yonhap Infomax, and the company will release its final earnings report later.

Greg Roh, head of research at Hyundai Automotive Securities, said: "as the world's largest memory chip maker, it is among the best in TV and mobile OLED displays and in smartphone shipments. Samsung is highly sensitive to the economy and profits are easily linked to demand."

This will be the first decline in Samsung's operating profit since the first quarter of 2020 and the lowest quarterly profit since the first quarter of 2021.

The price of some DRAM memory chips widely used in smartphones and personal computers plunged 14 per cent in the quarter, while the price of NAND flash memory chips for data storage fell 8 per cent, according to TrendForce.

CTOnews.com has learned that Samsung shares have fallen about 30% this year. By comparison, the Philadelphia semiconductor index fell 37%.

Samsung's mobile business is also expected to see a decline in profits, which are forecast to fall 17 per cent to 2.8 trillion won, although the company's expensive new foldable phones in the quarter raised the average sales price.

Kim Yang-jae, an analyst at Daol Investment & Securities, estimates that Samsung's smartphone shipments in the quarter fell 11% from a year earlier, to about 62.6 million units, after distribution channels cut orders.

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