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Samsung profits fall by 57% as a result of the Us-China trade war

In the second quarter, Samsung Electronics saw profits fall as its main chip company failed, and the company also warned of “difficulties” ahead. The largest smartphone and memory chip maker in the world said operating profit dropped 56 percent a year ago. The findings represent a wider slowdown in the sector, weighed down by the war on trade between the US and China.

As a result of a trade line between Seoul and Tokyo, the company also faces more potential disturbance to its chip company. The South Korean company published operating profit of 6.6 trillion Korean wins ($5.6 trillion; £ 4.6 trillion) for the three months to June, a 56 percent decrease from the 14.87 trillion Korean wins posted a year previously in the same era. The result was in line with company estimates.

Samsung said in a declaration that memory chip market weakness and price drops continued “despite a restricted recovery in demand.” “Not only in business areas, but also in the global macroeconomic environment, the company faces challenges from uncertainties,” it said.

Recently, Japan imposed export curbs on some industrial materials that Seoul needs to produce semiconductors and display screens. The move has raised concerns about the risk that trade spat poses to global supplies of technology, and may affect the future earnings of Samsung.

The firm also said it would concentrate in the third quarter on launching fresh products, including its first folding smartphone, which started shaky. After reports of broken screens, Samsung had to delay the launch of its new foldable smartphone previously this year.

The firm also said it would concentrate in the third quarter on launching fresh products, including its first folding smartphone, which started shaky. After reports of broken screens, Samsung had to delay the launch of its new foldable smartphone previously this year.

Article originally featured by BBC

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