Samsung announces Q2 2023 earnings, with a 14-year low in profit
The South Korean conglomerate is facing a challenging situation. Due to global economic conditions, the business has been experiencing a huge decrease in its semiconductor chip business. A major portion of the company’s profit is dependent on the semiconductor business. Global economic conditions and the COVID-19 pandemic has hit it hard. As of now, the tech giant Samsung has unveiled its Q2 2023 earnings data. As per the available information, things are not in favor of the company.
During Q2 2023, Samsung’s profit fell by nearly 95% to barely $459 million
The South Korean conglomerate was anticipating KRW 60 trillion (around $45.91 billion) in sales during Q2 2023 and around KRW 0.6 trillion (around $459 million) in terms of operating profit for the same period. However, the numbers were shocking since the company recorded a 95.74% drop in profit in contrast to the last year (Q2 2022). Reportedly, the sales dropped 22.28% as compared to last year. The corporation is reporting unsettling numbers for the second consecutive quarter. Even its Q1 2023 profits fell 96% from Q1 2022 levels.
One thing to notice here is that the company has shared all the details of the recorded numbers. According to analysts, the poor performance is related to the semiconductor division (Samsung Device Solutions). There is less demand for the memory chips. Samsung does not have enough clients for the memory chips that could be used in cloud servers and high-performance computing machines. Earlier this year, the company claimed that the situation might remain the same throughout the year.
On the other hand, Samsung’s smartphone division has shown good performance. The Galaxy S23 is doing really well in terms of sales. In some regions, the high-end smartphones recorded 1.6-1.7x more sales as compared to their ancestor during the same one-month time frame. Besides this, the company is facing tough competition in the home appliances and TV segments. Undoubtedly the company is trying hard to turn these segments profitable.
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