Samsung Forecasts Weaker Fourth Quarter on Falling Prices


Samsung Electronics (SSNHY), the world's biggest maker of TVs, expects weaker fourth quarter earnings because of lower prices and a stronger South Korean won.

The fourth quarter will see "severe" competition in TV prices, Samsung said, according to Bloomberg News. There will be excess supply in the computer-memory chip market and persistent low prices in the market for liquid-crystal displays, Samsung said.

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"We expect increased oversupply and price declines in the memory market, as well we possible further declines in LCD panels," Robert Yi, vice president of investor relations, said on a conference call. "Combining these with a possible appreciation of the won, we expect the overall fourth-quarter business conditions to be difficult."

Still, the company had a positive third quarter, with profits rising 17% to a record 4.46 trillion won ($4 billion).

Samsung said profit growth would slow in the fourth quarter, without giving details.

Originally published