Analyst: Samsung's profit is expected to plunge 25% in the third quarter, the first year-on-year decline in nearly three years.

CTOnews.com, Oct. 6 (Xinhua)-- Samsung's third-quarter profit may fall 25%, the first year-on-year decline in nearly three years, as the economic downturn weakens demand for electronic devices and their chips, according to Reuters.

Operating profit at Samsung, the world's largest maker of memory chips and smartphones, could fall to 11.8 trillion won (about 59 billion yuan) in the July-September quarter, according to a report by 22 Refinitiv SmartEstimate analysts.

CTOnews.com learned that Greg Roh, head of research at Hyundai Automotive Securities, said that as the world's largest maker of memory chips and shipments of TV and mobile OLED displays and smartphones, Samsung was highly sensitive to the economy and profits were easily linked to demand.

It will be Samsung's first drop in profits since the first quarter of 2020, at the beginning of the epidemic, and the lowest quarterly profit level since the first quarter of 2021, the report said.

On average, seven analysts expect operating profit in Samsung's chip business to fall nearly 1/3 to 6.8 trillion won (about 34 billion yuan). In addition, profits from Samsung's mobile business are also expected to decline, with profits expected to fall 17% to 2.8 trillion won (about 14 billion yuan).