Samsung Sees Quarterly Profit to Hit 8-Year Low as Demand Slump, Chip Price Falls

South Korean giant Samsung Electronics reported on Friday that its quarterly profit had dropped to an eight-year low due to a worsening global economy, which lowered memory chip prices and decreased demand for electrical products.

Samsung estimated its operational profit for the three months between October and December to be $3.4 billion (4.3 trillion won), down 69% year over year from 13.87 trillion won a year earlier.

Analysts predict that profits at the world’s largest memory chip, smartphone, and television manufacturer will fall again in the current quarter.

Samsung’s quarterly profit was its lowest since the third quarter of 2014, and it was also lower than the 5.9 trillion won Refinitiv SmartEstimate.

A brief preliminary earnings report from Samsung indicated that quarterly revenue likely declined by 9% year over year to 70 trillion won.

Demand for Samsung’s smartphones and other products, as well as the semiconductors it supplies to rivals like Apple Inc., has been impacted by the rising interest rates and cost of living throughout the world.

“For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances…,” Samsung said in the statement.