Samsung Electronics forecasts a 39% decline in operating profit for the second quarter due to issues with high-bandwidth memory chip supplies. This was reported by LSEG SmartEstimate.
Samsung's Profit Decline
The anticipated operating profit for Samsung for April-June is projected at 6.3 trillion won ($4.62 billion), marking its weakest performance in six quarters. Analysts attribute this to Nvidia's slow approval process for a new version of high-bandwidth memory (HBM) chips.
Memory Market and Competition
Samsung's competitors, such as SK Hynix and Micron, have been making the most of the strong demand for AI memory chips, while Samsung's gains in this market have been muted due to its reliance on the Chinese market, where the U.S. has constrained sales of high-end chips.
U.S. Policy's Impact on Samsung's Business
While demand for Samsung smartphones is expected to remain strong, the company faces uncertainties due to U.S. trade policies. Tariffs on imported smartphones could rise, affecting sales. The U.S. is also reportedly weighing whether to revoke licenses from global chipmakers, including Samsung.
Samsung Electronics' profit decline highlights the challenges the company faces amid fierce competition and changing U.S. trade policies.
