However, Samsung projected that in the second half of the year it would trim operating losses “as utilisation improves due to a gradual recovery in demand”.
Shares in Samsung were down around 0.8 per cent in Seoul on Tuesday.
“WEAK FOUNDRY”
The sharp profit and revenue drop is attributed “primarily to the weak foundry business, while the performance of the memory business stayed relatively stable”, Tom Hsu, an analyst at TrendForce told AFP.
The outlook for the next quarter is more optimistic, with “memory chip prices and shipments to keep rising, thanks to strong demand”, especially from data centres, added Hsu, including for AI.
Performance from the company’s HBM chips – used for advanced AI computing – “likely fell short of expectations”, said Chae Min-sook, an analyst at Korea Investment and Securities.
In addition, a price drop for its NAND, used for data storage, “likely widened losses slightly”, Chae added.
“The sharp decline in the won-dollar exchange rate since June will likely weigh on both sales and operating profit (for the second quarter),” she added.
Samsung is among the smartphone makers under pressure from US President Donald Trump, who has threatened South Korea with 25 per cent tariffs in a letter to Seoul on Monday.
Trump has repeatedly demanded that global companies – including Samsung and rival Apple- relocate production to the US, which many experts warn is unrealistic, citing complex Asia-based supply chains.
South Korea has already been hit by levies on steel and car exports, and said Tuesday it was maintaining “close communication” with the Trump administration as it sought to head off additional measures.
