News on the morning of July 5,SamsungElectronics announced that due to the continued weakness in the price and demand of memory chips, the company's second-quarter earnings may fall by more than 50% year-on-year.
Samsung Electronics
The world's largestsmart phoneThe maker and supplier of memory chips said operating profit was 6.5 trillion won ($5.5 billion), slightly higher than an industry estimate of 6 trillion won, but down 56 percent year-on-year. Sales in the second quarter were 56 trillion won, better than market expectations of 54.54 trillion won.
for mobilecell phoneAnd memory components for enterprise servers make up Samsung's main profitable business. Experts say the semiconductor industry as a whole is going through a period of inventory adjustment, which keeps demand low, creates excess supply and squeezes prices. Some predict persistent excess inventories of DRAM and NAND memory chips, delaying the industry's recovery until the second half of 2020.
In the previous quarter, Samsung's profit fell about 60 percent year-on-year to 6.2 trillion won ($5.3 billion). Samsung will report its full second-quarter results later this month.