Samsung expects to see a quarterly profit loss for the first time in almost three years!

Samsung Electronics Q3 profit may tumble 25%, the first YoY decline in almost 3 years, as an economic slump reduces demand for electronic devices and chips that power them.

According to a Refinitiv SmartEstimate from 22 experts, the world’s biggest memory chip and smartphone maker, will likely see a fall in operating profit to 11.8 trillion won ($8.3 billion) in the months ranging from July to September. In addition, according to TrendForce, prices of some DRAM memory chips (used in smartphones and PCs) tumbled 14% in the recent quarter. While prices for NAND flash chips (used in storage data) fell 8%.

On average, Samsungs shares have fallen 30% already this year and its mobile business is also expecting to see a loss in profits. With forecasts of a 17% decline to 2.8 trillion won. However, the release of Samsung’s new pricy foldable phone has raised the average selling price in the quarter.        

This would be the first profit decline since Q1 of 2020, the start of the pandemic era, and the lowest level of quarterly results since Q1 of 2021. Until this most recent quarter, the high demand for devices as people were forced to stay at home, has led to huge profit gains for the South Korean tech giant.

The preliminary results are due on Friday...