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Profit from Samsung’s memory chip business falls by a stunning 90%

Mount Equity Group Tokyo Japan > News > Business > Profit from Samsung’s memory chip business falls by a stunning 90%

Samsung Electronics Co. Ltd. saw its quarterly profit collapse after suffering a steep drop in demand for memory chips that resulted from consumers buying fewer electronic gadgets.

In its fourth-quarter earnings results published today, the South Korean company revealed that profit from its semiconductor business fell by a stunning 90%, to just 270 billion won (about $220 million) for the three months ended Dec. 31. Samsung said the decline was the result of its biggest customers working through piles of inventory, meaning very few are buying new chips at present.

Samsung’s memory chip business accounts for the lion’s share of its overall revenue and profit, and so the decline had a significant impact on its bottom line. The company said total revenue for the quarter came to 70.46 trillion won, down 9% from a year earlier. Operating income fell 69% from a year ago, to 4.3 trillion won, below the average estimate by…

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