Samsung says profits dropped by two thirds as global slowdown bites

The good news for the South Korean tech giant isn't contained in the earnings guidance it just released. According to the figures, the company may have just had its least profitable quarter in eight years, as the global economic downturn hits the company's core chip making and consumer tech businesses.

The operating profit is estimated to have fallen by over two thirds compared to the same period last year. The sales were down by 9 percent.

The profits of the competitor are down.

The economic downturn has hit several areas of the company. The amount of money people have to spend on high-end tech is decreasing because of rising interest rates, while the price of memory chips has fallen due to a decrease in demand.

As the world's largest manufacturer of phones, TVs, and memory chips, it is seen as an indicator of the health of the broader consumer tech industry. The fourth-quarter earnings guidance that was also released today contained some similar numbers. In the fourth quarter, operating profit was down 91.2 percent, which contributed to a 12.6 percent drop for the year.