Samsung Electronics flagged an expected 35 per cent year-on-year drop in profitability for the final quarter of 2023, with continued tepid consumer demand weighing on its bottom-line despite rising chip prices.

In earnings guidance for Q4 2023, the company pegged operating profit at KRW2.8 trillion ($2.1 billion), down from KRW4.3 trillion in the same period of 2022.

The drop was its sixth consecutive quarter of falling operating income.

Revenue was estimated to be down 4.9 per cent to KRW67 trillion.

In Q3, its net profit fell 38.3 per cent to KRW5.8 trillion and sales 12.2 per cent to KRW67.6 trillion.

Contract manufacturer Foxconn warned last week sales in the current quarter would drop, after revealing revenue in December 2023 fell 26.9 per cent year-on-year to TWD460.1 billion ($14.9 billion).

The two reports are the latest to dampen hopes of an early recovery in the global tech sector, which has been hurt by economic uncertainties and rising inflation.