Samsung warned that operating profit in the third quarter likely plunged 78% as it continues to contend with lower than usual demand for consumer devices.

According to earnings estimates released Wednesday, Samsung is forecasting an operating profit of about 2.4 trillion Korean won ($1.8 billion) for the three months ended September. It compares with 10.85 trillion won ($8 billion) in the same period last year.

In addition, revenue was projected to decline 12.7% from the previous year.

As global economic uncertainty weighs on consumers around the world, many people are holding on to their mobile phones and laptops longer, continuing a disappointing run for the electronics maker.

With shipments expected to decline 6% to fewer than 1.2 billion units, 2023 is expected to be the worst year for global smartphone shipments in 10 years, according to Counterpoint Research.

“Consumers are hesitant to upgrade their devices” in major markets like North America, the firm reported in August.

The effects have already been felt by Samsung. Following a record loss in its semiconductor business, the firm’s operating profit dropped 95% in the first quarter. In the second quarter, the results were similar.

In some areas of the global semiconductor industry, there is now a glut after a historic shortage during Covid, which has impacted Samsung, the world’s largest memory chip and smartphone maker.

Several analysts foresee an oversupply of semiconductors following the post-pandemic rebound, according to consultancy Bain.

Last month, Bain suggested that the trend was merely cyclical, caused by “normal” industry ups and downs.

A gradual comeback in global demand is also expected in the second half of the year, Samsung has told shareholders.