Samsung’s third-quarter operating profit has nosedived from low demand for memory chips and IT products.
The tech giant said on Friday on its earning guidance that it expected an operating income of 10.8 trillion won and consolidated sales of 76 trillion won.
Operating profit dropped around 32% from last year while sales increased by approximately 3%.
The figures are much power than what South Korean analysts had estimated.
The average figure for operating income by the major securities firm in the country was 11.9 trillion won, more than 1 trillion won higher than Samsung’s actual figures.
The downturn in the memory chip market is expected to have been the major cause of the profit drop.
DRAM and NAND flash prices have been nosediving in recent months; analyst firm TrendForce expects DRAM prices to drop up to 15% quarter-to-quarter while NAND flash prices drop up to 18%.
Further price drops are expected for the fourth quarter, according to the analyst firm.
Demand for TVs, home appliances and IT products has also been low from inflation and Russia’s invasion of Ukraine.