Samsung’s third quarter profit could drop 50 percent from last year

Samsung has struggled due to the decreased demand for memory chips

Samsung has released its expected earnings for the third quarter of 2019, and it looks like there hasn’t been much improvement for the tech giant.

The company is expecting another decline in profit for the third quarter. For instance, the tech giant is expecting that it will have an operating profit of 7.7 trillion Korean won (about $8.5 billion CAD).

Although this number is higher than Samsung’s secondquarter profit, which was 6.6 trillion won (about $7.3 billion CAD), it is down 56 percent from its third quarter in 2018.

Last year, Samsung’s third quarter earnings totalled 17.52 trillion Korean won (about $19.4 billion CAD).

This will be the third year in a row that the tech giant will see its operating earnings halved in the third quarter from the previous year, as outlined by CNBC.

Samsung released an earnings warning earlier this year in March in the first quarter to prepare investors. The lack of demand for memory chips could factor in the company’s finances.

Although the numbers aren’t looking that great, Sanjeev Rana, a senior business analyst at CLSA told CNBC that these numbers depict signs of broad-based recovery.

More information about Samsung’s operating profit will be revealed when the full earnings report is released, which is early next year.

Source: Samsung, CNBC Via: Engadget