Tech giant Samsung has warned of a sharp slump in profits on the back of falling demand for electronic devices and memory chips around the world.
The maker of smartphones and televisions estimated profits fell 32 per cent to £6.9billion between July and September.
Slump: The maker of smartphones and televisions estimated profits fell 32 per cent to £6.9billion between July and September
Analysts warned Samsung’s memory chip shipments slid while prices could take a further hit as smartphone and PC makers rein in spending and use up existing stock.
‘The pace of falling demand for smartphones, PC and TVs is very fast because of the macroeconomic headwinds. And the pace of cutting chip orders is faster because of high inventories,’ said Choi Do-yeon, an analyst at Shinhan Securities.
Shares in Samsung are down by around 40 per cent this year as chip-makers around the globe continue to be hit by weakening economic conditions.
US firm Advanced Micro Devices this week revealed it took a hit from falling demand for computers.
