Samsung Electronics profits plummet – La Tribune Afrique

It's a big fall. South Korean tech giant Samsung Electronics announced Thursday a collapse of more than half of its net profit in the third quarter, in a still depressed market for electronic chips. This net profit amounts to 6.290 trillion won ($ 5.4 billion), or 52 percent less than a year ago, said the world's number one smartphone and chip in a statement.

"Revenues in the memory sector have dropped significantly compared to last year, knowing that memory chip prices have continued their downward trend"explains the group.

Samsung suffers from the Sino-US showdown

The company is the flagship subsidiary of the giant Samsung Group, by far the largest family-controlled conglomerate known as the "chaebols" that dominate the business of the eleventh largest economy in the world. But in recent months, it has been affected by falling memory chip prices as global supply has increased.

Samsung also suffers from the US-China trade war and Tokyo's export restrictions in the historic dispute with Seoul over forced labor in wartime. Meanwhile, the group's vice president, Lee Jae-yong, began appearing last week in an appeal court case related to a corruption scandal that could see him return to jail.

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