Technology giant Samsung has warned of a 32% drop in its profits as demand for electronic devices and the memory chips that power them shrink due to the global economic downturn.
The South Korean company estimates that its quarterly operating income was about 10.8 trillion won (approximately $7.6 billion).
Samsung's profits from microprocessor manufacturing have been hit by falling global memory board prices due to lower global demand for consumer electronics.
Estimates that refer to the three months to the end of September mark Samsung's first annual decline in quarterly earnings in nearly three years.
Sales of electronic devices have been hit by rising inflation, higher interest rates and the effects of Russia's special military operation in Ukraine, which are deterring people from making new purchases.
Technology industry analysts predict that memory chip prices will continue to fall over the next three months as smartphone sales continue to decline and demand does not recover until early next year.
