Samsung Electronics says third quarter profit fell 56%

Samsung Electronics says it operating profit for the last quarter fell by nearly 56%, with its robust smartphone and TV sales offset by a continuously weak market for computer chips

SEOUL, South Korea -- Samsung Electronics said Thursday its operating profit for the last quarter fell by nearly 56%, with its robust sales of smartphones, displays and TVs offset by a continuously weak market for computer chips.

Samsung is the world's biggest maker of semiconductors and smartphones, but it has struggled with falling prices for DRAM and NAND memory chips since late last year.

Experts say chipmakers are suffering after misreading industry demand for their products. They invested heavily in 2016 and 2017 to ramp up production, but global orders for chips used in smartphones, internet-connected cars and other products have been slower than expected.

Samsung said 29.25 trillion won ($25 billion) of its revenue was generated from its mobile devices and network business, thanks to strong sales of its Galaxy Note 10 and Galaxy A smartphones and increased demand for 5G communication equipment.

The company also said it saw increased sales of high-end TVs and stronger demand for OLED (organic light-emitting diode) display screens.