Samsung Electronics expects a decline in its fourth-quarter revenue due to weak server chip demand

On Thursday, Samsung Electronics Co Ltd (005930.KS) announced that it expects a plunge in its fourth-quarter revenue due to weak server chip demand and rising smartphone competition.

“After the U.S. restrictions against Huawei Technologies (HWT.UL) took effect in earnest, demand from Chinese customers has increased,” Samsung’s Senior Vice President of Memory Product Planning & Application Engineering Team Han Jin-man stated.

Samsung’s operating revenue jumped by 59% to 12.35 trillion Won ($11 billion) from July to September period.

“Global demand is forecast to increase year on year, but uncertainties are unlikely to ease given the possibility of additional waves of the pandemic,” Ben Suh, Samsung’s Executive Vice President of Investor Relations Ben Suh said in an interview.

The South Korean multinational electronics company gained its best quarterly operating profit in two years during the third quarter.