The Wall Street Journal: Samsung’s profits slump sharply, thanks to sagging chip market

This post was originally published on this site

SEOUL — Samsung Electronics Co.’s third-quarter net profit fell sharply, pressured by a downturn in the memory-chip market, despite growth at its mobile and display businesses.

The South Korean tech giant reported a net profit of 6.29 trillion won ($5.4 billion) for the three months ended Sept. 30, a 52% drop from a year earlier, when the company reported its highest-ever net profit. The company reported revenue of 62 trillion won, down 5.3%.

Samsung 005930, +1.98%  , the world’s largest producer of memory chips, posted record quarterly profits for much of 2017 and 2018 as global demand for chips soared. More than 75% of Samsung’s earnings came from chips last year. But a semiconductor supply glut has dragged down prices, ending Samsung’s earnings hot streak.

The slump in profits hasn’t affected the company’s share price, which has rallied more than 30% this year as of Wednesday. Some analysts say the stock has risen in anticipation of a rebound in chip demand next year from smartphone makers.

An expanded version of this report appears on

Also popular on

The link between diet, exercise and Alzheimer’s.

Au revoir, foie gras: New York City bans sale of delicacy.