Samsung Suffers Staggering 96% Drop in Quarterly Profits Due to Prolonged Memory Chip Glut

Samsung reported its lowest operating profit in 14 years for the April to June quarter due to weak demand and oversupply of memory chips.
Samsung's operating profit plunged 96% in the second quarter compared to the same period last year as the chip industry experiences a prolonged supply glut.
Samsung estimates its operating profit fell to 600 billion Korean won, the lowest since the first quarter of 2009, and revenue dropped 17.4%.
Demand for memory chips remains weak, but production cuts by Samsung and others could stabilize prices toward the end of 2019 or in early 2020.
Samsung received one-year waivers allowing it to keep importing tools for its China plants, which are expected to be renewed indefinitely.