Sunday, May 22, 2022
UniqPaid - online rewards program

Samsung profits tumble as it warns of ‘challenges’ ahead

Samsung Electronics saw profits plunge in the second quarter as its key chip business faltered, and the firm also warned of “challenges” ahead. The world’s biggest smartphone and memory chip maker said operating profit fell 56% from a year earlier.

The results reflect a broader industry slowdown, weighed down by the US-China trade war. The firm also faces more possible disruption to its chip business due to a trade row between Seoul and Tokyo.

The South Korean firm posted operating profit of 6.6 trillion Korean won ($5.6bn; £4.6bn) for the three months to June, a 56% drop from the 14.87 trillion Korean won posted in the same period a year earlier. The result was in line with company estimates.

In a statement, Samsung said weakness and price falls in the memory chip market continued “despite a limited recovery in demand”. “The company is facing challenges from uncertainties not only in business areas but also from changes in the global macroeconomic environment,” it said.

  • How an Asian trade row could hit electronics supplies
  • Samsung says folding phone ‘ready’ after screen fix
  • Broken screens delay Samsung Galaxy Fold launch

Japan recently imposed export curbs on certain industrial materials that Seoul needs to make semiconductors and display screens. The move has raised concerns over the risk the trade spat presents to global technology supplies, and could affect Samsung’s future earnings.

Media caption WATCH: Hands-on with the Samsung Galaxy Fold

The company also said it would focus on the launch of new products in the third quarter including its first folding smartphone, which got off to a shaky start. Samsung had to delay the launch of its new foldable smartphone earlier this year following reports of broken screens.

The defects with the device proved a source of embarrassment for the firm, which has seen declining smartphone sales and faces growing competition from rivals including China’s Huawei. Last week, Samsung said the Galaxy Fold will go on sale in September after improvements were made to the smartphone.

More from author

Match.com rapist Jason Lawrance ‘attacked six more women’

A serial rapist convicted after attacking seven women he met on internet dating sites is back on...

Laurent Koscielny ‘very hurt’ by Arsenal row – Olivier Giroud

Arsenal captain Laurent Koscielny is "very hurt" by his conflict with the club, his friend and former...

Pregnant Jemma Lucy’s ‘irresponsible’ Instagram post banned

An Instagram post by reality star Jemma Lucy has been banned by the Advertising Standards Authority (ASA)....

Man Utd v Leeds: Ole Gunnar Solskjaer says fan trouble will not be an issue

Manchester United boss Ole Gunnar Solskjaer says fan disorder will not "be an issue" at Wednesday's pre-season...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Trends Now





Proof of Insurance on the RiskBlock Blockchain

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or...

Syrian Kurds accuse Turkey of violating ceasefire

Kurdish-led forces in north-east Syria have accused Turkish troops and allied Syrian rebels of violating a ceasefire deal that ended a two-week offensive. The...

Boris Johnson campaigned for Brexit and against the E.U

European leaders have praised the election victory of British Prime Minister Boris Johnson, embracing the decisive result for a man who campaigned for Brexit...

What We Need to Know About the Global Economy in 2022

The Global Economy in 2022 The Global Economy - Everywhere you see and hear from all the governments: Our main priority is the health of...
%d bloggers like this: