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Tech giant Samsung warns of sharp drop in profits due to falling demand for electronic devices and memory chips around the world
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Tech giant Samsung has warned of a sharp decline in profits due to falling demand for electronic devices and memory chips around the world.
The smartphone and television maker estimated profits increased by 32 percent to £6.9 billion between July and September.
Slump: Smartphone and TV maker estimated profits jump 32 percent to £6.9bn between July and September
Analysts warned that Samsung’s memory chip shipments fell, while prices could take a further blow as smartphone and PC makers rein in spending and use up existing inventory.
“The pace of declining demand for smartphones, PCs and TVs is moving very quickly due to the macroeconomic headwind. And the pace of chip order cutting is faster because of high inventories,” said Choi Do-yeon, an analyst at Shinhan Securities.
Shares in Samsung are down about 40 percent this year as chip makers around the world continue to be hit by weakening economic conditions.
US company Advanced Micro Devices revealed this week that it was hit by falling demand for computers.