Samsung Electronics Says Weak Chip Demand Sent Fourth-Quarter Profit Well Below Market Estimates

Samsung Electronics Says Weak Chip Demand Sent Fourth-Quarter Profit Well Below Market Estimates
The logo of Samsung Electronics is seen at its office building in Seoul, South Korea on March 23, 2018. Kim Hong-Ji/Reuters
Reuters
Updated:

SEOUL—Samsung Electronics surprised the market on Jan. 8 with an estimated 29 percent drop in quarterly profit, blaming weak chip demand in a rare commentary issued to “ease confusion” among investors already fretting about a global tech slowdown.

The South Korean firm also said profit would remain subdued in the first quarter due to difficult conditions in memory chips, but that the market is likely to improve in the second half of the year as customers release new smartphones.