Samsung’s preliminary report: 77% drop in profit in the third quarter of 2023

Samsung this morning at A press release, released its preliminary performance report for the third quarter of 2023 and said that operating profit for the period in question was 77% lower than in the third quarter of 2022. The dramatic drop in Samsung’s profits is the result of declining demand for processors around the world.

Samsung says it expects operating profit to reach 2.4 trillion won ($1.79 billion) and product sales to reach 67 trillion won ($49.9 billion) in the third quarter of this year. Samsung’s profit and sales decreased by 77% and 12% respectively compared to the third quarter of 2022.

Samsung is highly dependent on the chip industry for its annual revenue, and any problems in this area will directly affect Samsung’s revenue and profits. The increase in economic problems in the world reduced the demand for phones and laptops, and in response to these conditions, the demand for chips also decreased.

Despite Samsung’s poor performance, the company’s chip business is less loss-making than in previous quarters, suggesting that we may see an improvement in Samsung’s fortunes in the not-too-distant future. In recent months, Samsung has tried to focus on high-end RAM while reducing production volume.

Samsung recorded its worst performance in the last 14 years in the first quarter of 2023; At that time, Samsung’s profit fell by 96%. Samsung’s sharp drop in profit continued in the second quarter and reached 95%. Samsung is the largest manufacturer of memory chips in the world.

Samsung’s phone business has helped the company somewhat control the trend of declining profits. Apparently, sales of foldable phones Galaxy Z Fold 5 and Galaxy Z Flip 5 have greatly affected this situation. At the same time, it has been said that Samsung’s display business is also doing well.

Samsung’s full financial report will be released in about two weeks.

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