Samsung's profits down 23% due to fall in chip prices

Profits at Samsung have fallen 23% as strong growth in its mobile phone business was overshadowed by a poor performance in the memory chip arm.

The world's number one chip maker and number two handset firm reported a net profit of 3.44 trillion won ($3.1bn; £1.9bn) in the July-September quarter.

Handset profits more than doubled to 2.52tn won on strong sales from its Galaxy smartphones.

However, profit at its chip business more than halved to 1.59tn won.

Samsung's mainstay chip division has been hurt by a global fall in the prices of computer memory chips.

Analysts warned that Samsung's chip division may continue to face tough times in the short term.

"I see some signs that chip prices have hit bottom as inventories are running out," said Park Hyun, of Tong Yang Securities.

"However, we don't yet know when the industry is going to pick up since macroeconomic uncertainties overshadow the demand outlook," he added.