Samsung Electronics has projected a drop of more than 30 percent for its third quarter operating profit.

The tech giant estimated in its earnings guidance on Friday that its profit came to ten-point-eight trillion won in the July-to-September period, down 31-point-seven percent on-year.

The drop is likely the first on-year decline in nearly three years since the fourth quarter of 2019, falling well short of market analysts’ expectations. Sales were projected to total 76 trillion won for the quarter, up two-point-73 percent over the same period last year.

The worse-than-expected estimates are attributed to a drop in demand due to the global economic slowdown and the falling prices of memory chips.