Samsung profits slump as demand for chips plummets

Samsung said it expects its profits for the last three months of 2022 to fall by 69% to the lowest level in eight years as the slowdown in demand for semiconductors and electronics hit home.

The world's biggest maker of memory chips, smartphones and TVs estimated operating profit for the period fell to around 4.3tn Korean won (£2.8bn) as consumers tighten their belts amid the cost-of-living crisis.

It was Samsung's lowest quarterly profit since 2014 and missed investor expectations of around KRW 5.9trln.

"For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances," Samsung said in a statement. "Smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues," it added.

The company is scheduled to publish its full financial statement on 31 January.