Q4 operating profit seen at 2.8 trillion won
Misses analysts39; outlook of 3.7 trillion won
Rival LG Electronics also missed market consensus

SEOUL, Jan 9 Reuters Samsung Electronics Co Ltd reported a likely 35 drop in fourthquarter operating profit on Tuesday, much worse than analysts expected as weak consumer demand persisted in many of its businesses even as memory chip prices improved.

The world39;s largest memory chip, smartphone and TV maker estimated in its preliminary results that its operating profit fell to 2.8 trillion won 2.13 billion in OctoberDecember from 4.31 trillion won a year earlier.

The profit missed a 3.7 trillion won LSEG SmartEstimate, weighted toward forecasts from analysts who are more consistently accurate.

Lowerthanexpected profit from Samsung39;s chip contract manufacturing, mobile processors, television and home appliance businesses may have caused Samsung to fall short of forecasts, analysts said.

Rival LG Electronics on Monday flagged fourthquarter operating profit of 313 billion won, well below estimates due to intensifying competition and higher spending on marketing in the television and home appliance markets to revive consumer demand, which has been hurt by high inflation.

The only thing that has improved is memory chips, and that39;s because Chinese PC and mobile makers began restocking memory chips in fourth quarter after using up their own stocks for so long, said Lee Minhee, analyst at BNK Investment Securities….