Samsung predicts decline in profits due to weak demand and growing competition

TECHNOLOGY giant, Samsung Electronics, said it expects a decline in profit in the three months due to weak memory chip demand and intense competition in the smartphone and consumer electronics.

Analysts say that’s likely due to increased competition after the release of a new Apple iPhone 12 and iPhone 12 Pro.

“Looking ahead, Samsung Electronics expects profit to decline in the fourth quarter amid weakening memory chip demand from server customers and intensifying competition in mobile phones and consumer electronics,” the company said in a statement.

However, “demand for chips used in smartphones, personal computers and graphics processing units, used for gaming consoles and PCs, is predicted to rise,” Samsung said.

Therefore, the mobile business will potentially see smartphone sales decline, according to the South Korean tech giant.

CNBC

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