Samsung Electronics Announce Third-quarter Profit Down 56%
Samsung Electronics Announce Third-quarter Profit Down 56%
Technology giant Samsung Electronics has free limited data ended its third-quarter figures, which look to suggest that their net for the period are down 56%. Despite a large projected reduction, the figures are nevertheless better than the forecasts by primal analysts.
Memory Chip Prices
The South Korean company is said to be struggling as a result of a downturn in global memory chip prices, which receive been header down since late antepenultimate year and this is now being represented in their revenue Numbers.
The operational profit for the period was guessed to be $6.4 billion from the July-September menses, but that was still high than umteen expected to be the case. This is down from the record 17.6 one million million krw that the biggest semiconductor firm in the world triggered a year ago.
Samsung, also the largest maker of smartphones across the globe, say they expect overall sales to have born by 5.3% in the three-month period to 62 trillion krw, with demand for appliances so much every bit smartphones and fashionable natural philosophy gadgets seeing a drastic slowing.
Supply Glut
Those World Health Organization take apar the market have suggested that a glut in the provide of flash chips, such every bit DRAM and NAND ones, could represent a reason for the lowering of profits. These are said to account for terminated 60% of sales for the companion, so that is a concern.
That is levelled out with the projection of improvement ahead, as prices of NAND, the chips used predominantly in mobiles, are calculate to discover advanced this year, with demand unsurprising to rise again.
It may well be that the electronics giant has flat-bottomed out and could be set back to pass to its former glories.
Trade War – Again
It is believed that the biggest deciding factor out the slump is the on-going US-China trade war, which has run into sales to clients in Asia, not least Huawei.
Withal, with talks set to continue regarding a possible solution, there could embody light at the goal of the burrow in damage of a turnaround in the next period.
It should exist self-confessed that Samsung has sole released limited data ahead of regulatory filings, with the more elaborated numbers due to comprise confirmed later in the calendar month.
by DayTrading.com
Source: https://www.daytrading.com/samsung-electronics-announce-third-quarter-profit-56
Posted by: foxpenated.blogspot.com
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