Electronics giant struggles with declining markets

Samsung profits drop by 44 per cent

Samsung has posted a 44 per cent reduction in revenue as prices for computer chips and LCD displays continue to drop.

Despite being the only major chipmaker to report profits for the quarter, Sony’s chip making division struggles with perennially falling prices.

The company’s mobile division has reported a reduction in profit margins down to seven per cent from 13 per cent in the previous quarter even though it sold a record 51.8 units.

“The market environment in the third quarter proved challenging amid rising costs and a downturn in the global economy,” said Samsung’s investor relations officer, Chu Woo-sik. “We foresee the coming months to be an even more challenging period.”

Source: FT

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