Samsung, like Apple, feels sting of slowing global growth
by The Associated Press
Samsung reports that a weak global demand for chips and smartphone competition is driving down margins
NEW YORK – Samsung expects its quarterly operating profit will be nearly 29 per cent lower than last year, potentially unsettling a tech sector already skittish about slowing global economic growth.
The announcement from the South Korean computer chip and smartphone giant comes less than a week after Apple Inc. jolted markets with its weak expectations for revenue to end the year, citing flagging sales in China.
Related:
Apple warning of weak sales in China sends U.S. stocks sinking
Samsung said late Monday that it anticipates a quarterly operating profit of about 10.8 trillion won (US$9.6 billion).
Fourth-quarter sales are expected to be approximately 59 trillion won ($52.4 billion), down 10.6 per cent from the prior-year period.
Samsung says there’s weak global demand for chips amid a worldwide economic slowdown, while its smartphones are facing stronger competition.
