Samsung Electronics said Friday its fourth-quarter operating profit likely plunged 69 percent from a year earlier due to lower demand for chips and home appliances amid recession worries. Yonhap

Samsung Electronics said Friday its fourth-quarter operating profit likely plunged 69 percent from a year earlier due to sliding memory chip prices as the global downturn pummeled demand for IT gadgets and servers.

The world's largest memory chip and smartphone maker estimated its October-December operating profit at 4.3 trillion won ($3.4 billion), down from 13.87 trillion won a year ago.

In an earnings shock, Samsung reported a quarterly operating income of less than 5 trillion won for the first time in eight years after posting 4.06 trillion won for the third quarter of 2014.

"With external business environments set to remain uncertain, chip sales plummeted due to lower demand from server clients, data centers and handset makers," Samsung Electronics said in a statement.

Chip suppliers, including Samsung Electronics, SK hynix and Micron Technology, readjusted their inventories during the fourth quarter, further driving down chip prices, it said.

Smartphone and home appliance sales also declined due to decreased consumer spending amid soaring interest rates and high inflation, Samsung said.