Samsung has projected its first drop in quarterly operating profit in two years, blaming the economic slowdown in China and the simmering trade war between Beijing and Washington for weakening demand of chips and slowing smartphones sales.
The company blamed “mounting macro uncertainties” for its downbeat guidance, saying global demand fell more than expected as big technology companies adjusted their investment in data centres.
That hit the company’s memory chip business, with prices falling more than it had expected and the company’s fourth-quarter sales and profit significantly undershooting the estimates of analysts polled by Bloomberg.
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