According to some recent pieces of information, the South Korean conglomerate Samsung will report an 80% operating profit loss in Q3 of the current fiscal year. The company is anticipated to share its Q3 earnings later this week. The prime reason behind these losses is the semiconductor division. The semiconductor business is continuously facing difficulties due to the current state of the global market.
According to London Stock Exchange Group (LSEG) analysts, the operating profit for the third quarter will be around 2.3 trillion won ($1.7 billion), whereas the company will earn around 67.8 trillion won ($50 billion) in revenue. If we go by these figures, then it is a 78.7% yearly decline in operating profit. However, it represents an 11.6% downfall in revenues. According to market analysts, the company might observe its biggest loss in Q3. Concerning the Samsung Semiconductor business, the division might report more than 3 trillion won ($2.2 billion) in losses.
The company’s growth in other sectors
Well, the prime reason behind these losses could be the current challenges for the memory market. Unfortunately, the memory division has not recovered as per expectations. Such a situation is not just limited to Samsung Electronics; rather, these conditions prevail all over the world due to low demand and oversupply.
In Q2, the company reported a 95% on-year operating profit loss because of the low performance of the semiconductor unit. Irrespective of these losses, the company’s display and mobile units can show positive growth in Q3 2023. The Display unit of the company might observe increased revenue given its recent partnership with Apple for the supply of OLED panels for the iPhone 15 series. Furthermore, analysts assume that the recently debuted foldable, including the Galaxy Z Fold 5 and the Galaxy Z Flip 5, could contribute to increased growth for Samsung’s mobile business.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.