Samsung published its quarterly earnings report for the first three months of 2023, and the results were shocking in terms of sales and operating profits compared to the previous quarter or on an annual basis.
The world has been experiencing major economic problems in recent months, for several reasons, the most important of which is the Russian war on Ukraine, and the US Federal Reserve’s tendency to continuously increase interest, which caused a decline in purchases, in addition to the crisis of shortage of chips and semiconductors in light of the tension between China on the one hand, and Taiwan and the United States. United on the other hand.
And across The official blog For Samsung, the results of the first fiscal quarter of the current year 2023 were revealed, which showed a shocking decline in profits that the South Korean company had not witnessed since 2009.
The report confirmed that Samsung’s sales amounted to 62 to 64 trillion Korean won (about 48 billion US dollars), which is 10% less than the last fiscal quarter of 2022, and recorded a decline of about 20% on an annual basis compared to the first quarter of last year.
The biggest shock came in Samsung’s operating profit, as it amounted to 0.5 to 0.7 trillion Korean won ($455 million), which is 86.1% lower compared to the time period preceding it – the last quarter of 2022 – and a decrease of 95.6% from the 14.12 trillion Korean won profit achieved by the company. At the beginning of 2022.
Samsung holds its chip manufacturing and sales operations responsible for this significant decline, and therefore the company announced that it will significantly reduce the production of memory chips due to weak continuous demand, and focus on getting rid of the inventory that it already has.
Samsung’s big profit decline is happening for the second quarter in a row, only the last quarter of last year witnessed a decline in profits of nearly 70% on an annual basis, and in its previous report, the company blamed the war in Ukraine and inflation.
With the announcement of the new report and the continuous decline in sales, it seems that Samsung’s golden era of chips and chip sales has ended, and that the company must work to provide what is new or rely on other products that will compensate for the sharp decline in profits.
