Samsung Electronics, the world’s largest smartphone and memory chip maker, reported a decline in profits in the second quarter.
The company posted operating profit of 6.6 trillion Korean won ($5.6 billion) for the three months to June, down 56% compared to the 14.87 trillion Korean won it reported in the same period last year.
Revenue for the quarter dropped 4% to 56.13 trillion Korean won.
The company attributed the results to difficult market conditions for its semiconductor business and said it faces challenges from uncertainties “not only in business areas but also from changes in the global macroeconomic environment.”
Samsung said in an official news release: “The weakness and price declines in the memory chip market persisted as effects of inventory adjustments by major datacenter customers in the previous quarters continued, despite a limited recovery in demand.”
Samsung said it expects its semiconductor business to recover in the second half of the year, but noted that it sees volatility in the overall industry due to “increased external uncertainties.”
The company’s mobile division reported an 8% increase in revenue, while profits fell 42% year on year.
Samsung said its mid-range models sold well during the quarter, such as the new Galaxy A Series, including the Galaxy A50 and A70. However, its more profitable flagship devices suffered from “weak sales momentum”.
“In the second half, the overall mobile market demand is expected to remain weak due to growing uncertainties over the global economy and trade,” the company said.
Last week, the company announced that its Galaxy Fold smartphone will go on sale this September after several improvements were made to the device. Samsung hopes that its upcoming Fold smartphone will help boost premium smartphone sales.