Samsung Electronics said on Tuesday (Jul 8) it expected its second quarter operating profits to fall by more than half, blaming United States export controls on advanced artificial intelligence chips to China.
The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia’s fourth-largest economy.
The tech giant said in a regulatory filing that its April to June operating profits were expected to drop to ₩4.6 trillion (US$3.3 billion) – down 56 per cent from a year earlier and 31 per cent from the previous quarter.
The figure was 23.4 per cent lower than the average estimate, according to South Korea’s Yonhap news agency, which cited its own financial data firm.
The tech giant said in a regulatory filing that its April to June operating profits were expected to drop to ₩4.6 trillion (US$3.3 billion) – down 56 per cent from a year earlier and 31 per cent from the previous quarter.
The figure was 23.4 per cent lower than the average estimate, according to South Korea’s Yonhap news agency, which cited its own financial data firm.
However, Samsung projected that in the second half of the year it would trim operating losses “as utilisation improves due to a gradual recovery in demand”.
Shares in Samsung were down around 0.8 per cent in Seoul on Tuesday.