According to foreign media reports,SamsungEarnings reports for the third quarter of 2019 showed that the tech giant's financial situation has not improved significantly in the past few months. Samsung expects profits to fall again by the end of September. Samsung is expected to post an operating profit of about 7.7 trillion won ($6.44 billion), which would be up from 6.6 trillion won ($5.5 billion) in the second quarter but still down 56 percent from the same period in 2018 , the company's profit at the time was 17.57 trillion won ($14.7 billion).
Samsung (picture source network)
Samsung will reveal more details about the company's position when it releases its full earnings report. As CNBC points out, if Samsung's forecast is correct, it will be the third consecutive quarter that its operating profit has halved from a year earlier. Samsung also issued a warning ahead of its first-quarter 2019 earnings forecast to prepare its investors to lose money.
The "darkest hour" of Samsung's chip business is clearly not over yet. Plunging chip prices and slowing chip demand continue to plague Samsung, whose chip business has been its biggest cash cow for some time, so lack of global demand for memory chips is hurting the company's financial health. However, Sanjeev Rana, a senior analyst at CLSA, said industry conditions are improving and Samsung's memory shipments in the third quarter were actually better than expected.