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Samsung's 2nd quarter chip sales unlikely made up for smartphone weakness

The world's biggest supplier of certain memory chips on Tuesday will announce preliminary April-June revenue as well as operating profit.

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Chips bring in roughly half of Samsung's profit.

Heekyong Yang | Reuters Seoul

At Samsung Electronics Co Ltd, demand for its chips from data centres bulking up to meet a surge in work-from-home traffic was not likely enough to offset muted sales of its smartphones in the second quarter, analysts said.

The world's biggest supplier of DRAM and NAND memory chips on Tuesday will announce preliminary April-June revenue as well as operating profit, which it previously expected to show a decline.

Profit likely fell 4.5% to 6.3 trillion won ($5.25 billion) from the same period year earlier, according to Refinitiv SmartEstimate, which is weighted towards the more consistently accurate analysts.

Work-from-home orders and growth in online