POST TIME: 1 November, 2019 00:00 00 AM
Samsung third-quarter net profit slumps 52pc
AFP, Seoul

Samsung third-quarter net profit slumps 52pc

The world's largest smartphone and memory chip maker Samsung Electronics saw net profits slump by more than half in the third quarter, it said yesterday, hit by an enduring downturn in the global chip market. Net profits in the three months to September were 6.29 trillion won ($5.40 billion), it said in a statement -- down 52 per cent year-on-year.

"Earnings from the memory business slumped significantly year-on-year as memory chip prices continued its downward trend," the company said. The firm is the flagship subsidiary of the giant Samsung Group, by far the largest of the family-controlled conglomerates known as "chaebols" that dominate business in the world's 11th-largest economy.

But in recent months it has been battered by falling chip prices as global supply increases. Samsung also faces challenges from the US-China trade war and tough export restrictions imposed by Tokyo on key supplies as part of a dispute with Seoul over wartime forced labour.

The South Korean tech titan leads the global smartphone market with a 23 per cent share, trailed by Chinese competitors Huawei and Oppo, with Apple in fourth place, according to sales tracker IHS Markit. The premium smartphone market has grown fiercely competitive and overall sales have cooled as a lack of major innovation has seen buyers waiting longer before upgrading to new models.