Samsung predicts 56% drop in 2Q profit on weak chip market

SEOUL, South Korea — Samsung Electronics Co. says its operating profit for the last quarter likely fell more than 56% from a year earlier amid a weak market for memory chips.

The South Korean tech giant on Friday estimated an operating profit of 6.5 trillion won ($5.5 billion) for the April-June quarter, which would represent a 56.3% drop from the same period last year.

The company says revenue likely fell 4% to 56 trillion won ($48 billion), but did not provide a detailed account of its performance by business division. It will release a finalized earnings report later this month.

Analysts say falling prices of DRAM and NAND memory chips are eating into the earnings of the company, which saw its operating profit during the first quarter drop more than 60% from last year.

Must Read

US, Russia close on Syria deal, but Obama says...

Sep 4, 2016

President Barack Obama says the United States and Russia are working "around the clock" to try to...

China promises cooperation on steel at global...

Sep 5, 2016

China promises cooperation on steel at global summit amid pressure for trade curbs

US tycoon's China scholarship project opens doors...

Sep 10, 2016

A new scholarship program intended to rival the prestigious Rhodes Scholarships and build...

2 dead after powerful typhoon sweeps through...

Sep 15, 2016

Officials say a powerful typhoon has swept into southeastern China after hitting Taiwan, leaving a...

China launches second space station, Tiangong 2

Sep 15, 2016

China has launched its second space station in a sign of the growing sophistication of its...