Samsung Electronics forecasts 56% fall in Q2 profit over weak chip market

Samsung Electronics said Friday it expects operating profit to tumble 56 percent for the second quarter of this year in the face of a weakening chip market.

The world’s largest maker of smartphones and memory chips has enjoyed record profits in recent years despite a series of setbacks, but is now struggling, with chip prices falling as global supply increases while demand weakens.

Operating profit for the April to June period is forecast to reach around 6.5 trillion won ($5.6 billion), down 56 percent from a year earlier, the firm said in a statement.

Revenue is expected to fall 4.2 percent to 56 trillion won. Samsung is scheduled to report final results later this month.