Samsung Electronics flags sharp Q4 profit drop on falling demand

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Samsung Electronics said Friday it expected its fourth-quarter operating profits to plunge 69 percent, as the global downturn causes a sharp decline in demand for memory chips and smartphones.
The South Korean tech giant said operating profits for the October-December period likely slumped to 4.3 trillion won ($3.4 billion), a stinging year-on-
year drop from 13.87 trillion won.
In a statement, Samsung said fourth-quarter profits were “well below current
market expectations”, blaming the performance on macroeconomic issues, spurred by central banks around the world raising interest rates.
Weak demand for memory chips was “greater than expected as customers adjusted inventories… to further tighten finances spurred by concerns over deteriorating consumer sentiment caused [by] continued high global interest rates and weak economic outlooks”.