Samsung eyes recovery as chip prices firm up

It's known as the world's biggest maker of smartphones.

But Samsung Electronics' business goes a lot further than fancy handsets - and so do its problems.

The South Korean giant is due to report earnings on Tuesday (October 8).

Analysts are forecasting a 60 percent decline in operating profit for the July-September quarter.

Chips are the big headache.

They account for over half of Samsung's profits.

But prices for semiconductors have tumbled amid weak demand.

They fell around 25% in the first quarter of this year.

Now analysts see signs that things are at least getting less bad.

Though chip prices are still falling, the percentage decline is forecast to slow to single digits in early 2020.

Meanwhile, Samsung's mobile phone business is looking a whole lot happier.

In the second quarter its market share in Europe jumped to a five-year high of over 40 percent, helped by new 5G devices.

Rival Huawei has inadvertently lent a hand.

Its sales have stumbled following the imposition of U.S. sanctions.

They may prevent it selling phones fitted with Google apps.

Samsung is all too happy to mop up any consumers now hesitant about the Chinese brand.