Samsung expects lowest profit in 14 years
Weak sales of memory chips are to blame
Will we see a rebound from the bottom in the next quarter?
Samsung Electronics is going through tough times, at least financially. Since the middle of last year, it has recorded a significant decrease in sales and profit, in the last quarter it even ended up in the black. And as it seems, even in the past quarter, the Korean giant was not better off in terms of power.
Samsung expects another weak quarter
In recent days, Samsung published estimates of financial results for the period between March and June this year. The Korean company estimates that it took in approximately 60 trillion won (about 1 trillion crowns) in the past quarter, from which it generated a meager operating profit of 0.6 trillion won (about 10 billion crowns). At the same time last year, Samsung reported a profit of 14.1 trillion won, which means that the year-on-year decrease will be an incredible 96 percent. If the prediction comes true, it will be the worst profit since the first quarter of 2009, when Samsung reported a profit of 0.59 trillion won.
Samsung did not comment on the reasons for this decline in the press release, but it can be assumed that they are the same as last quarter – weak demand for memory chips due to the global economic crisis and geopolitical uncertainty. Samsung prepared investors for the fact that the situation will turn around in the second half of this year, we will see whether his prediction comes true in the next quarter.
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Samsung plans to publish detailed financial results on July 27, in which we will also learn how the mobile division performed. Samsung praised its results in the first quarter, but it would need significantly better numbers to erase the chip unit losses. The new flexible smartphones that Samsung will reveal on July 26 could also help, but according to the latest leaks, it won’t be a significant step forward. Owners of the previous generation will probably not find many reasons to upgrade. So let’s hope that the weak financial results will not lead to the limitation of the development of future products.
Author of the article
Jakub Karásek
A fan of mobile technology, convertibles and wireless charging, a fan of hard music and a lover of fast driving in go-karts, bikes and skis. Opponent of FUP, slow internet and overgrown smartphones.
2023-07-08 17:30:00
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