Samsung Electronics estimated profitability would plummet for a second consecutive quarter in Q2, impacted by weak global demand and declining memory prices as inventories build.

The smartphone giant expects operating profit to drop from KRW14.1 trillion ($10.8 billion) in Q2 2022 to KRW600 billion and revenue to fall 22.3 per cent to KRW60 trillion.

Samsung’s operating profit forecast matches its guidance for Q1.

It is scheduled to report its Q2 earnings on 27 July.

TrendForce noted following significant production reductions by US and South Korean manufacturers in May, some suppliers have increased NAND flash wafer prices.

The research outfit predicts a market shift in June, reversing a trend of decreases since May 2022, which could mean the worst is over Samsung’s chip business.

Samsung’s Q1 net profit dropped to KRW1.6 trillion and revenue 18 per cent to KRW63.8 trillion. At the time, it warned smartphone shipments and ASPs would fall in Q2 but forecast a rebound in the second half.