Samsung profit earnings fall to lowest in six years
The current global economic situation is not unique to any one business or company. The recent economic crisis has affected every sector of society. No matter how much a company or organization is self-sufficient, it is not shielded from ongoing challenges. The same is the case with the tech firm Samsung. The current quarterly assessments of the tech firm indicate the trials it is facing in the global market. According to experts, the situation will even get worse before it improves. Samsung is witnessing a similar effect in its outcomes too. It is now estimated that the quarterly profits of Samsung are going to hit the lowest in a span of six years.
The world is going through a period of economic escalation. There are high inflation rates internationally. Given this scenario, the market of mobile phones, as well as electronics, has been set down. The economic situation has equally affected consumers as well as businesses. Due to high inflation and interest rates, consumers refrained from buying new products. Similarly, businesses have stepped back in their purchases. Thus, affecting the demand and supply chain worldwide. This on the whole accounts for the low-profit earnings of Samsung.
As per the analyst, this situation is not good at all. Considering the quarter that ended in December 2022, some analysts believe that the operating profit of the tech firm Samsung will stand at around $4.62 billion. Although, the number might appeal to others. But the company’s profile of earnings depicts this value to be the lowest since Q3 2016.
Furthermore, analysts consider that the smartphones and chips business of Samsung will fall due to less demand in the market. In addition to this, the prices for DRAM chips have also decreased to around 40% YoY. Due to this, profits were significantly reduced for Samsung. Likewise the chip manufacturers SK Hynix and Micron have also faced similar situations. They have now decided to cut down their investments in 2023.
On the other hand, Samsung is focusing on a different strategy. It is strengthening its chip manufacturing approach so that it could present a great comeback once conditions begin to improve. Expectedly the company will declare the initial results for the previous quarter by tomorrow. Whereas full earning details will be shared later this month.
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