“Samsung Reports 96% Drop in Operating Profit Due to Chip Sales Slump”

Korean companies Samsung is not doing too well now. It released its financial results for the last quarter and it wasn’t very good. The company reported revenue of 63.75 trillion Korean won (1.03 trillion CZK), which is a huge number, but it’s 18% less than this time last year, and that’s a fairly noticeable drop. It is much worse, especially in terms of operating profit. It shrank to just 640 billion won, which is a year-on-year drop of 96%. Considering the income, the company has only a 1% operating margin, and that is already dangerously close to the edge of profitability.

Chips are the problem. The low interest in memory chips pushes the price down, which as customers we welcome, but manufacturers now have to deal with the excessive supply and, on the contrary, low interest in them, which is also contributed to by the bad macroeconomic situation. However, the Device Solutions division also has a problem with the sale of SoCs and other chips, and Samsung Foundry is not in a completely rosy situation either. No miraculous recovery is expected for the next quarter, rather just a gradual return to a better situation. For this quarter, the division is characterized by a significant loss of 4.58 trillion. won.