Samsung Warns of Weaker Outlook Even as Profit Beats
- Profit is expected to decline this quarter on weak chip demand
- Competition in smartphones, consumer electronics to intensify
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Samsung Electronics Co. warned earnings in the current quarter will decline, saying the strong growth in its mobile and memory business that helped third-quarter profit beat will ease amid intensifying competition and weakening demand.
The world’s largest maker of memory chips and personal electronics said net income rose a better-than-expected 52% to 9.27 trillion won ($8.2 billion) in the three months ended September, beating the 7.54 trillion won average of estimates. Samsung foresees capital spending of about 35.2 trillion won this year because of a migration to more advanced chip processes and a buildout of its contract chipmaking business.