Korean tech giant Samsung reported a 56% decline in second-quarter operating profits to 6.6 trillion won (approximately $5.6 billion), hurt by lower prices of memory chips. Shares of the company fell 3% immediately following the announcement.
Consolidated revenues for the quarter came in at 56.13 trillion won, down 4% year-over-year.
“The weakness and price declines in the memory chip market persisted as effects of inventory adjustments by major datacenter customers in the previous quarters continued, despite a limited recovery in demand,” the company said in a statement.
Samsung expects persistent uncertainties in the memory business in the second half of the year, although demand is seen growing further on strong seasonality and adoption of higher-density products. For system semiconductors, higher demand in mobile APs, image sensors and display driver ICs (DDIs) is also expected to be seen.
The results were better, meanwhile, slightly better than the forecast it had provided a month ago.
The company is now expected to release two smartphone models — Galaxy Note 10 and Galaxy Fold — in the next two months.
Samsung shares have gained 17% in the year-to-date period.