Samsung profit plunges in first drop since 2019 as chipmakers feel bite

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Samsung profit plunges in first drop since 2019 as chipmakers feel bite
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Samsung forecast on Friday its operating profit plunged 32% in the third quarter of the year as weaker memory pricing and demand hit the technology giant.

Samsung forecast on Friday its operating profit likely plunged 32% in the third quarter of the year as weaker memory pricing and demand hit the technology giant.

However, one analyst said that memory cycle is "bottoming" and prices could rise again next year which will help Samsung.Samsung is facing headwinds from a global slump in deamand and prices for its memory chips, sales of which make up a large part of the South Korean technology giant's business.Samsung said Friday its operating profit likely plunged 32% in the third quarter of the year as weaker memory pricing and demand hit the technology giant.

Samsung reported a revenue rise of between 75 trillion and 77 trillion Korean won, a 1.3% to 4% year-on-year rise. The company sells NAND and DRAM chips which are used in devices such as laptops and smartphones, through to data centers. It also has a semiconductor manufacturing business. Samsung did not release any commentary alongside its third-quarter forecast but analysts said a weakening of memory chip prices and demand was likely behind the profit fall.

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