Business

Samsung Electronics Q2 net profit slumps 53%

SEOUL The world's biggest smartphone and memory chip maker Samsung Electronics saw net profits slump by more than half in the second quarter, it said yesterday.

Net profits in the three months to June were 5.18 trillion won (S$6 billion), down 53 per cent year on year.

The flagship subsidiary of the sprawling Samsung Group has enjoyed record profits in recent years despite a series of setbacks, but it is now struggling, with chip prices falling as global supply increases.

"The weakness and price declines in the memory chip market persisted... despite a limited recovery in demand," it said.

In mobile phones, it achieved "stronger shipments on new mass market models but was overall weighed down by slower sales of flagship models and increased marketing expenses", it added.

Samsung launched its top-end S10 5G smartphone earlier this year after South Korea won the global race to commercially launch the world's first nationwide 5G network.

But in April, it was embarrassingly forced to delay the release of its new and hotly anticipated Galaxy Fold phones after reviewers provided with early devices reported screen problems within days of use. - AFP

BUSINESS & FINANCE