Samsung warns of profit drop as chip demand slows

(BBC) – Samsung Electronics expects to post a 29% drop in quarterly operating profit as demand for smartphones and memory chips slows.

The firm forecasts operating earnings of 10.8 trillion Korean won ($9.7bn; £7.6bn) for the last three months of 2018.

It marks the first quarterly profit drop in two years as strong demand for chips had boosted earnings at the firm.

Samsung also faces fierce competition from Apple and Chinese rivals.

In a statement on Tuesday, the firm cited lackluster demand and rising competition for its darkening outlook.

“We expect earnings to remain subdued in the first quarter of 2019 due to difficult conditions for the memory business,” the South Korean tech giant said in a statement.