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Samsung profits tumble as it warns of 'challenges' ahead

31 July 2019 09:59 (UTC +04:00)

Samsung Electronics saw profits plunge in the second quarter as its key chip business faltered, and the firm also warned of "challenges" ahead, APA reports citing BBC.

The world's biggest smartphone and memory chip maker said operating profit fell 56% from a year earlier.

The results reflect a broader industry slowdown, weighed down by the US-China trade war.

The firm also faces more possible disruption to its chip business due to a trade row between Seoul and Tokyo.

The South Korean firm posted operating profit of 6.6 trillion Korean won ($5.6bn; £4.6bn) for the three months to June, a 56% drop from the 14.87 trillion Korean won posted in the same period a year earlier. The result was in line with company estimates.

In a statement, Samsung said weakness and price falls in the memory chip market continued "despite a limited recovery in demand".

"The company is facing challenges from uncertainties not only in business areas but also from changes in the global macroeconomic environment," it said.