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

Thanks to CTOnews.com netizens for the delivery of clues on the way! CTOnews.com, July 6, according to Reuters, analysts predict that Samsung's second-quarter profit is expected to plunge 96% year-on-year, the lowest in the past 14 years. The continued surplus of chips is the main reason for Samsung's profit decline.

▲ Tu Yuan Pixabay according to data from 27 analysts at Refinitiv SmartEstimate, Samsung's operating profit is likely to fall to 555 billion won in the second quarter from April to June (CTOnews.com Note: currently about 3.091 billion yuan).

According to this forecast, this would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung lost 740 billion won (currently about 4.122 billion yuan) in a single quarter. By comparison, Samsung's operating profit in the second quarter of last year was 14.1 trillion won (currently about 78.537 billion yuan).

Analysts pointed out that Samsung Electronics' loss in the current quarter was mainly due to a further drop in the price of memory chips and a sharp reduction in inventory value. this will lead to a quarterly loss of 3 trillion-4 trillion won (currently about 16.71 billion-22.28 billion yuan) in Samsung Electronics's chip division, traditionally the largest profitable division.

According to TrendForce, the price of DRAM memory chips, which are widely used in smartphones, PCs and servers, continued to decline in the quarter, falling by about 13% and 18%, as chip buyers chose to run out of inventory instead of buying new chips. However, as Samsung Electronics and its peers choose to cut supply, the decline in memory chip prices has slowed compared with previous quarters and is expected to bottom out around the third quarter, with a significant recovery next year, analysts said.

Samsung Electronics will release preliminary revenue results for the second quarter on Friday, and detailed revenue figures later this month.

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