Samsung Electronics reported an 11 per cent drop in its quarterly profit today.
The company was hurt by shrinking margins in mobile phones and flat screens, but it forecast a recovery across its businesses in the second half.
Samsung, the world's top memory chip maker and the third biggest handset producer, expects flat screen prices to stabilise with sales picking up, mobile phone demand to improve thanks to new, ultra-slim phones and memory chip shipments to rise.
The company said the chip sector would improve markedly, with prices of NAND flash memory chips, used in digital cameras and music players, dropping by only a single-digit percentage in the third quarter after a 32 per cent tumble in the second quarter.