Samsung Electronics Faces 80% Drop in Q3 Profit

Samsung Electronics, the world’s leading producer of memory chips, smartphones, and televisions, is projected to report an 80% YoY drop in Q3 operating profit. This decline is attributed to a global chip oversupply, affecting the company’s primary revenue stream. Operating profit is estimated to be KRW 2.1 trillion ($1.56 billion), compared to KRW 10.85 trillion in the same period last year. The chip division, typically the highest earner, is expected to incur losses due to slow recovery in memory chip prices and production cuts. This challenging market environment is affecting industry players, including Micron Technology, which forecasted a quarterly loss. Despite these challenges, demand for memory chips used in AI applications remains strong. Samsung aims to catch up with rivals in this segment.