Samsung beats estimates as demand picks up for Note, IPhone

Samsung profit tumbles as memory chip business suffers from low demand

The situation was made worse by United States sanctions against China's Huawei Technologies, a major purchaser of Samsung's chips.

He also pointed out that Samsung's investment to transform the low-end LCD display production line to OLED manufacturing facilities, which cost about half a trillion won, could be another burden on Samsung's fourth-quarter earnings.

However, on the positive note, the demand for memory chips has shown sign of improvements in the current quarter. Consultants had thought Samsung would employ a heavier hit from the ongoing plug in quiz for memory chips, which fable for round two thirds of the firm's profits.

Samsung also took advantage of the USA trade ban against Huawei, "replacing a strong competitor in crisis" with its mid-to-low tier Galaxy A handsets, said Counterpoint Research analyst Sujeong Lim. Huawei devices were absent from the launch of 5G in the United Kingdom for example, while the upcoming Mate 30 will shop without access to key applications or the Google Play Store.

Like Samsung Pay, Samsung Pay Cash works anywhere Samsung Pay and Mastercard is accepted for contactless payments and magnetic stripe cards, which makes it among the most convenient forms of payment on the market and it's secure.

The news comes at a good time for the world's larger maker of smartphones, which, like Apple, has been experiencing falling sales in recent quarters.

The two-year boom in the storage chip market ended due to the weak global economy and the decline in spending by data center customers.

Samsung is warning investors that itsoperating profit likely plunged 56% in the third quarter as the company continues to struggle with sluggish demand for memory chips.

"The handset division's operating profit ratio dropped to the 5-percent level during the second quarter but is expected to have recovered to the 8-percent level during the third quarter", said Yoo Jong-woo, a researcher at Korea Investment and Securities Co.

The company believes that it will post an operating profit of around 7.7 trillion Korean won ($6.44 billion). It also flagged a revenue fall of 5.3% to 62 trillion won.

However, this is still slightly better than the expectation of analysts.

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