Samsung Electronics on Friday announced an unexpected 32% decline in their quarterly operational earnings. The recent economic downturn resulted in reduced demand for electronic equipment and the chips that are inbuilt into them. The company announced in its preliminary earning releases that profit declined to 10.8 trillion won ($7.67 billion) in Q3 from 15.8 trillion won in the previous year. Samsung witnessed its first year-on-year decline in the past three years. Analysts predict that memory chip prices will continue to decline in Q4 as well, resulting in a further dip in Samsung’s fourth-quarter profits.
The analyst also forecasts that the demand might not recover until 2023.
Read More: Samsung’s earnings slump on rapid drop-off in chip demand
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