Weak chip demand to dent Samsung earnings

South Korean technology giant Samsung Electronics Co Ltd estimated on Tuesday a dramatic decline in its fourth-quarter earnings, amid falling demand in its memory chip business as well as mounting competition from Chinese smartphone makers.

The world's largest maker of smartphones and semiconductors predicted its operating profit for the three months ended December was approximately 10.8 trillion won ($9.67 billion), down 29 percent from the same period a year earlier.

Samsung's forecast came a week after its rival Apple Inc lowered its revenue forecast for the first time in almost two decades, citing weakening demand and lower-than-expected iPhone revenue in China as some of the factors.