A South Korean flag, left, and Samsung Electronics flag fly outdoors the corporate’s headquarters in Seoul, South Korea, on July 5, 2019.

Jean Chung | Bloomberg | Getty Photos

SINGAPORE — Samsung Electronics on Thursday mentioned it expects a decline in revenue within the three months that can finish on Dec. 31 resulting from weak reminiscence chip demand and intense competitors within the smartphone and client electronics.

The world’s prime smartphone maker introduced a 59% year-on-year leap in working revenue to 12.35 trillion Korean received (about $10.89 billion) for the July-September quarter, which was in line with earlier guidance. Samsung mentioned it was partly resulting from a lift in demand for smartphones and client electronics — sale of smartphones, together with new flagship fashions just like the Galaxy Note20, noticed a close to 50% leap in gross sales.

Samsung shares fell 1.19% in early commerce, monitoring the general decline within the South Korean market the place the Kospi index was down 1.27%.

“Trying forward, Samsung Electronics expects revenue to say no within the fourth quarter amid weakening reminiscence chip demand from server clients and intensifying competitors in cell phones and client electronics,” the corporate mentioned in an announcement.

Low costs for reminiscence chips utilized by servers in information facilities are prone to weigh on the principle profit-making semiconductor enterprise within the final three months of 2020. Demand for chips utilized in smartphones, private computer systems and graphics processing models, used for gaming consoles and PCs, is predicted to rise, Samsung mentioned.

The cell enterprise will doubtlessly see smartphone gross sales decline, in response to the South Korean tech big. However the shows unit, which counts Apple as a buyer, is about to see a big rise in cell panel gross sales from the third quarter resulting from new smartphone launches.

For subsequent 12 months, Samsung predicted a restoration in total international demand however mentioned uncertainties will stay over the coronavirus pandemic.

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