As Offices Are Raided, Samsung Reports 6.6 Percent Drop in Profit
In quarterly earnings announced Tuesday morning, Samsung Electronics Co. reported that its net income had fallen 6.6 percent over the same period the year before. The South Korean electronics giant mostly attributed the drop to sharp price drops in the computer memory chip market, the Associated Press reported.
The drop came despite continued strength for the company in mobile handsets, sales of which set a new record. The company was still considerably profitable- posting a net profit the equivalent of $2.36 billion- but profits were down from the year before.
The earnings announcement, the AP also reported, coincided with the raid of the company’s headquarters by South Korean prosecutors, who are probing allegations that the company has a slush fund that it uses to bribe public officials. Samsung has denied the allegations, which were made by a former lawyer for the company.