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SEOUL — Samsung Electronics Co.’s third-quarter net profit fell sharply, pressured by a downturn in the memory-chip market, despite growth at its mobile and display businesses.
The South Korean tech giant reported a net profit of 6.29 trillion won ($5.4 billion) for the three months ended Sept. 30, a 52% drop from a year earlier, when the company reported its highest-ever net profit. The company reported revenue of 62 trillion won, down 5.3%.
Samsung 005930, +1.79% , the world’s largest producer of memory chips, posted record quarterly profits for much of 2017 and 2018 as global demand for chips soared. More than 75% of Samsung’s earnings came from chips last year. But a semiconductor supply glut has dragged down prices, ending Samsung’s earnings hot streak.
The slump in profits hasn’t affected the company’s share price, which has rallied more than 30% this year as of Wednesday. Some analysts say the stock has risen in anticipation of a rebound in chip demand next year from smartphone makers.
An expanded version of this report appears on WSJ.com.
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