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<p data-start="80" data-end="402"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Samsung Electronics expects its operating profit for the April&ndash;June quarter to fall 55.9% year-on-year to 4.59 trillion won ($3.4 billion), down from 10.44 trillion won a year ago, primarily due to weak chip demand and the impact of U.S. trade restrictions. The figure also marks a 31.2% decline from the previous quarter.</span></p>
<p data-start="404" data-end="629"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The earnings guidance, released Tuesday, missed market expectations by over 23%, according to a Yonhap Infomax survey. Revenue for the quarter remained flat, down just 0.1% at 74 trillion won. Net earnings were not disclosed.</span></p>
<p data-start="631" data-end="942"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Samsung attributed the profit drop to inventory adjustments and the ongoing effects of U.S. export controls on advanced AI chips to China. Despite reports that its high-bandwidth memory (HBM) products failed to meet Nvidia's quality tests, the company said improved versions are now being evaluated and shipped.</span></p>
<p data-start="944" data-end="1195"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Looking ahead, Samsung expects stronger demand and better performance in its memory division in the third quarter. It also anticipates reduced losses in its non-memory and foundry segments due to improved utilization rates and gradual market recovery.</span></p>
<p data-start="1197" data-end="1528"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Analysts estimate the semiconductor unit earned roughly 1 trillion won in Q1. Factors contributing to the Q2 shortfall include weak HBM sales, falling NAND flash prices, and a stronger Korean won. The Galaxy S flagship launch had limited impact on Q2 results, while TV and appliance profitability also took a hit from U.S. tariffs.</span></p>
<p data-start="1530" data-end="1726" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Despite the weak quarter, analysts forecast a rebound starting in Q3, driven by recovering memory chip prices and HBM demand. The company&rsquo;s final earnings report will be released later this month.</span><br><br><span style="font-family: georgia, palatino, serif; font-size: 12pt;">[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]</span></p>
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Samsung blames Q2 profit plunge on weak chip demand, US export bans, and rising inventory costs

Samsung Profit Drops 56% Amid Chip Slump, US Tariffs

Samsung blames Q2 profit plunge on weak chip demand, US export bans, and rising inventory costs

July 8, 2025 | 16:26 IST