Samsung Electronics reported its worst quarterly profits in 14 years due to slowing consumer spending on electronics and a global microchip glut.

The company's operating profit fell 95% from a year earlier to 640 billion won ($478.6 million), with the chip division reporting losses for the first time since 2009.

Samsung attributed this to weak demand and falling prices for memory chips, which usually generate half its profits. The firm plans to scale back production to address oversupply.

 Analysts expect worsening conditions in the April to July period, possibly leading to Samsung's first profit loss since 2008. Nonetheless, the company has plans to build the world's largest chip center in Yongin, south of Seoul, with a contribution of $227 billion over the next two decades.

Its first-quarter net income fell 86.1 percent to 1.57 trillion won, and sales dropped 18 percent to 63.75 trillion won.

source; punchng.com

https://punchng.com/samsung-electronics-logs-worst-quarterly-earnings-in-14-years/