Samsung expects its quarterly operating profit to fall 29 percent compared with last year, adding to the tech sector’s unease about the effect of slowing global economic growth on the industry.
The announcement from the South Korean computer chip and smartphone giant comes less than a week after a weak outlook from Apple Inc. jolted markets.
Samsung said there’s weak global demand for chips amid a worldwide economic slowdown, while its smartphones are facing stronger competition. The weakening trend follows many record-breaking profit quarters from Samsung. In October, the company said there was strong demand for its memory chips, although it had previously noted the slowdown for smartphones. It has been revamping its lower-cost phones lineup.