Samsung Faces Weakest Quarter Since 2009 As Memory Chip Market In 'Worst Slump In Decades'

Samsung is expected to report its worst profit in 14 years due to falling prices for memory chips -- the company's biggest business -- and weak demand. CNBC reports: The South Korean technology giant guided earlier this month that it would post operating profit of 600 billion Korean won ($449 million) for the first quarter. If Samsung reports this number, it would be the company's lowest profit since the first quarter of 2009. Samsung releases preliminary earnings guidance, but does not give detailed figures. It reports its full first quarter earnings on Thursday. Samsung is the world's largest maker of memory chips, which go into everything from PCs to servers in data centers. During the height of the pandemic, demand for consumer electronics was high, as people stayed home. Electronics companies piled up chips to go into these products. But buyers are now cutting back on purchases of these goods due to inflation and macroeconomic concerns, leading to somewhat of a memory chip glut.

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