Samsung’s Q3 profit is expected to decline by 25 percent, according to analysts. One of the world’s largest chip manufacturers could see the first decline in profits in three years, amid rising inflation, fears of recession, and uncertainty about the fallout from Russia’s invasion of Ukraine. Until the latest quarter, robust demand for devices as people were forced to stay at home has driven large profit gains for the South Korean tech giant.
Samsung’s third-quarter profit could tumble 25 percent, the first year-on-year decline in nearly three years, as an economic downturn saps demand for electronic devices and the chips that power them.
Globally, inflation is on the rise, central banks are aggressively hiking interest rates, fears of recession are growing and uncertainty about the fallout from Russia’s invasion of Ukraine is ever-present. As a result, businesses and consumers alike have reined in spending.
Operating profit for Samsung, the world’s biggest memory chip and smartphone maker, likely fell to KRW 11.
