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upstart writes:

Samsung warns of 32% hit to profits on chip slump:

Technology giant Samsung has warned of a 32% slide in its profits as demand for electronic devices and the memory chips that power them shrinks due to the global economic slowdown.

The South Korean company estimates its quarterly operating profit was about 10.8tn won ($7.6bn; £6.9bn).

On Thursday, US chip maker Advanced Micro Devices (AMD) also said it was hit by a fall in demand for computers.

[...] The estimates, which are for the three months to the end of September, mark Samsung's first year-on-year decline in quarterly profits in almost three years.

[...] Meanwhile, AMD's revenue estimates for the third quarter were about a $1bn (£895.6m) less than previously forecast, signalling the slump in demand for chips could be much worse than expected.

[...] "This is going to be a common theme for companies in the second half of 2022 due to weakening consumer demand," Neil Shah from market analysis firm Counterpoint Research told the BBC.

[...] Technology industry analysts have forecast that memory chip prices will continue to plunge in the next three months as sales of smartphones continue to slide, with demand not expected to recover until early next year.

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