Samsung Electronics expects its fourth-quarter operating profit to fall by over a third due to sluggish consumer electronics demand.
In a statement, the South Korean tech behemoth predicted a profit of 2.8 trillion won ($2.1 billion) for October-December, a 35% decrease year on year. Sales revenue was also reported down 4.9 percent to 67 trillion won.
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Samsung is the world's largest smartphone manufacturer and the flagship company of Samsung Group, by far the largest of Asia's fourth-largest economy's family-controlled corporations.
South Korean chipmakers, led by Samsung, have experienced record profits in recent years as product prices have skyrocketed, but the global economic recession has harmed memory chip sales.
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Demand increased as people purchased PCs and smartphones amid lockdowns amid the pandemic, leading chipmakers to increase production.
However, once lockdowns ended, hunger immediately waned, and it fell further in the face of skyrocketing inflation and rising interest rates.
In October, Samsung stated that it projected better memory market circumstances in 2024, with PC and mobile demand likely to gain from some replacement cycles for items sold during the epidemic.
At the end of this month, the company is anticipated to release its last earnings report for 2023.
