Samsung Electronics noticed profits plunge within the second quarter as its key chip enterprise faltered, and the agency additionally warned of “challenges” ahead.
The world’s largest smartphone and reminiscence chip maker mentioned working revenue fell 56% from a 12 months earlier.
The outcomes replicate a broader trade slowdown, weighed down by the US-China commerce battle.
The agency additionally faces extra potential disruption to its chip enterprise because of a commerce row between Seoul and Tokyo.
The South Korean agency posted working revenue of 6.6 trillion Korean gained ($5.6bn; £4.6bn) for the three months to June, a 56% drop from the 14.87 trillion Korean gained posted in the identical interval a 12 months earlier. The end result was in step with firm estimates.
In an announcement, Samsung mentioned weak spot and worth falls within the reminiscence chip market continued “despite a limited recovery in demand”.
“The company is facing challenges from uncertainties not only in business areas but also from changes in the global macroeconomic environment,” it mentioned.
Japan lately imposed export curbs on sure industrial supplies that Seoul must make semiconductors and show screens.
The transfer has raised considerations over the danger the commerce spat presents to world know-how provides, and will have an effect on Samsung’s future earnings.
The firm additionally mentioned it would deal with the launch of new merchandise within the third quarter together with its first folding smartphone, which acquired off to a shaky begin.
Samsung needed to delay the launch of its new foldable smartphone earlier this 12 months following stories of damaged screens.
The defects with the system proved a supply of embarrassment for the agency, which has seen declining smartphone gross sales and faces rising competitors from rivals together with China’s Huawei.
Last week, Samsung mentioned the Galaxy Fold will go on sale in September after enhancements have been made to the smartphone.