Memory Loss: Prices Weaken for Chips Used in Smartphones, Self-Driving Cars

Shares in the world's largest smartphone and semiconductor maker slid 2.3% on Friday after Samsung said it expected second-quarter operating profits of 14.8 trillion won ($13.2 billion), below analyst estimates of 15.1 trillion won. That result would break the South Korean company's string of four record-shattering quarters. Memory chips go in everything from smartphones to internet-connected light bulbs to self-driving cars, and growth in demand for the chips had outrun supply. The current pullback in their pricing reflects stepped-up production by manufacturers plus sluggish smartphone sales. Even so, the industry is still healthy.