Samsung reports lower profits due to drop in market prices of products

Samsung reports lower profits due to drop in market prices of products

Electronics giant Samsung has reported a third straight quarterly profit drop as prices of semiconductors, flat panel displays and mobile phones fell. This comes just days after LG.Philips reported similar trends in their profit reports. The company said that it made $1.63 Billion in the quarter that ended on 30 June, which is nearly 46% less than what it made last year in the same quarter.

However, this figure is slightly better than the market expectations of $1.56 Billion. The lowering price of memory in the market is one of the primary reasons for this fall in profits. However, the company recovered some of those profits from flat screen sales. Samsung is the world’s largest maker of flat screens.

Samsung is basically into manufacturing of 2 types of RAMs. DRAM chips are for computers and Flash Memory is for digital gadgets like cameras and phones. The prices of DRAM based memory chips almost halved in this period costing the company big time. Market analysts believe that the market conditions should improve this running quarter with the diminishing of the overburdened supplies.

The company itself said that they are expecting a better performance from the second half of the year.