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Samsung warns of third-quarter profit slump as consumers cut back on tech spending – News Opener

SEOUL—Samsung Electronics Co. is expected to see its third-quarter profit slump as the company’s mainstay memory-chip and smartphone businesses feel the effects of curbed consumer spending on tech products in the midst of high inflation and other economic pressures.

On Friday, the tech company projected third-quarter operating profit of 10.8 trillion South Korean won, or roughly the equivalent of $7.7 billion, a 32% drop from the prior year’s 15.8 trillion won.

Revenue for the quarter ended Sept. 30 is expected to increase year over year by 2.7% to 76 trillion won, the company said.

The company’s estimated third-quarter results were well below market expectations. Analysts polled by FactSet were on average expecting roughly 11.9 trillion won in operating profit and 78.2 trillion won in revenue.

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The analysts’ estimate for the quarter had once been much higher, ahead of steep drops in memory-chip prices in recent months. In June, Samsung’s operating profit for the July-September period was expected to be around 15.9 trillion won, according to FactSet.

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