According to the South Korean company, it has seen a larger-than-expected decline in computer chip demand.
Samsung anticipates that the company’s profit for the next three months in 2022 will fall 69%, compared to its lowest point in the past 8 years.
The news comes as chip prices and electronics demand are being affected by slowing global economic growth.
The world’s biggest maker of memory chips, TVs and smartphones is expecting to see profits drop to $3.4 billion in the final quarter of this year.
Global technology giants have “tightened” their belts in recent months. This was Samsung’s first loss since 2014. Investor expectations were for profits in excess of $4.7 billion.
Samsung stated that the fourth quarter decline in memory chip sales was greater than expected because consumers have moved their inventories to reduce costs.
According to the South Korean company, it has seen a larger-than-expected decline in computer chip demand.
The company stated that smartphone sales and revenue fell due to low demand.
In the global technology sector, thousands of jobs have been lost.
Samsung is expected reveal its financial position by January 31. This is the latest information technology company to disclose how global economic problems have affected its business.