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Samsung Profit Drops Most in Four Years as Chip Prices Slump

  • Chip buyers working through inventories, pushing prices down
  • Sluggish smartphone demand also hurts bottom line at Samsung
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Daniel Yoo of Kiwoom Securities discusses Samsung’s preliminary earnings and his outlook for the second quarter.(Source: Bloomberg)
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Samsung Electronics Co. reported its worst operating-profit drop in more than four years, buffeted by falling memory-chip prices and slowing smartphone sales.

Operating income fell 60 percent to about 6.2 trillion won ($5.5 billion) in the three months ended March, according to preliminary results released Friday from the Suwon, South Korea-based company. That was the biggest decline since a similar drop in the third quarter of 2014. Analysts surveyed by Bloomberg had expected a 56 percent slump to an average of 6.93 trillion won.