Samsung warns of 32% hit to profits on chip slump

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As a result of the global economic downturn, demand for electronic devices and the memory chips that power them is expected to decline.

The South Korean company believes it made an operating profit of over 7 billion dollars in the third quarter.

Advanced Micro Devices said it was hit by a fall in demand for computers.

People are cutting back on purchases as the cost of living increases.

Weak demand for consumer electronics caused the global price of memory chips to plunge, which resulted in a decline in profits for the company.

For the three months to the end of September, the estimates show a year-on-year decline in earnings for the first time in three years.

The company's earnings are due to be released on October 27th.

The revenue estimates for the third quarter were less than expected, signalling the slump in demand for chips could be worse than thought.

The PC market weakened in the quarter.

She said that weak economic conditions had caused demand to be lower than anticipated.

The stock fell in New York.

The impact of Russia's invasion of Ukraine has deterred people from buying electronic devices.

This has caused firms that buy memory chips to cut their purchases as they use up their stock.

According to technology industry analysts, memory chip prices will plunge in the next three months, with demand not expected to rebound until early next year.