Samsung Electronics on Tuesday estimated its second-quarter operating profit plunged 55.9% from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations.
The world's biggest maker of memory chips expected an operating profit of 4.59 trillion won ($3.4 billion) for the quarter ending in June, sharply down from 10.44 trillion won a year earlier, according to an earnings guidance released by Samsung Electronics.
From the previous quarter, operating profit sank 31.2% from 6.69 trillion won.
Revenue edged down 0.1% to 74 trillion won.
Samsung Electronics attributed the sharp on-quarter decline in profit to inventory replenishments and the impact of the US ban on exports of advanced AI chips to China.
