Samsung reports 32% drop in quarterly profits

Samsung reports 32% drop in quarterly profits

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

On Thursday, American chip maker Advanced Micro Devices said that it was hit by a fall in demand for computers.

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

AMD's revenue estimates for the third quarter were about a $1 billion 895.6 m less than previously forecast, signalling the slump in demand for chips could be much worse than anticipated.

Increased inflation, higher interest rates and Russia's invasion of Ukraine have deter people from making purchases, which has resulted in increased interest rates and the impact of Russia's invasion of Ukraine.

This has led firms that buy memory chips, such as manufacturers of smartphones and personal computers, to cut their purchases as they use up their existing stocks.

Technology industry analysts have predicted that memory chip prices will 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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