Samsung Electronics Co Ltd posted a 56 percent decline in operating profit for the second quarter Wednesday, hit by a continued fall in memory chip prices in the mid-supply.
SEOUL: Samsung Electronics Co Ltd had a 56 percent decline in second quarter operating profit Wednesday, hit by a continued fall in memory chip prices in the middle of oversupply.
Operating profit was 6.6 trillion won ($ 5.6 billion) in the second quarter, in line with the 6.5 trillion won estimate the company released earlier this month.
The notoriously cyclical memory chip industry is in the midst of a downturn after a two-year boom, as slowing demand for things like smartphones is pulling down prices on the chip.
Last week, Samsung's South Korean chip rival SK Hynix said it would cut investment and production to boost the country's initial recovery in demand for chips.
(Reporting by Ju-min Park and Heekyong Yang; Editing by Stephen Coates)