Samsung quarterly profit set to slump 25%, first decline in nearly three years

SEOUL: Samsung Electronics Co Ltd’s third-quarter profit could tumble 25%, the first year-on-year decline in nearly three years, as an economic downturn saps demand for electronic devices and the chips that power them.

Globally, inflation is on the rise, central banks are aggressively hiking interest rates, fears of recession are growing and uncertainty about the fallout from Russia’s invasion of Ukraine is ever-present. As a result, businesses and consumers alike have reined in spending.

Operating profit for Samsung, the world’s biggest memory chip and smartphone maker, likely fell to 11.8 trillion won ($8.3 billion) in the July-September quarter, according to a Refinitiv SmartEstimate from 22 analysts.