South Korean Samsung Electronics made less profit last quarter than market experts had expected. The company is suffering from lower demand for memory modules and chips for PCs, driving prices down.
The company is also struggling with weak demand for smartphones and other electronic gadgets as consumers have become more cautious.
In the three months to September, Samsung’s net profit amounted to 9.1 trillion won. Analysts expected a profit of 9.4 trillion won. The tech group previously warned when publishing the preliminary figures that operating profits have fallen for the first time since 2019.
The turnover of the semiconductor division of the world’s largest manufacturer of memory chips amounted to 23 trillion won. Connoisseurs had counted on 35 trillion won in revenues from the chip division.
Chip manufacturers worldwide have warned against headwinds in the markets for some time. However, stocks are piling up because the demand for chips and products containing chips is decreasing.
During the corona pandemic, chips were hard to come by due to the strong demand for laptops and other equipment to enable working from home, and many sectors were faced with a shortage of chips.
