Samsung reports low third-quarter 2023 profits as losses from semiconductor chips decline
The tough and challenging conditions for the semiconductor business have impacted several companies. Samsung is one of them. The company has suffered big losses due to less demand. The company has shared the earnings report for Q3 2023. The numbers indicate that although the profits are lower, they are still better compared to the last quarter. It seems like the company is emerging from that slump and cutting losses in its semiconductor chip division.
Samsung’s smartphone sector contributed to profits in Q3 2023
According to reports, the company’s revenue could be around KRW 67 trillion ($50.07 billion), with profits triumphing around KRW 2.4 trillion ($1.79 billion). As compared to Q3 2022, it is a 77% decline in operating profit. However, it is a huge improvement in contrast to the KRW 0.6 trillion (around $459 million) reported in Q2 this year. Although its sales are still down 12% year over year, analysts predict a turnaround in the demand for semiconductor chips in the upcoming quarters. These claims were made by the company in its earnings guidance.
In the last quarter, the company reported its worst profit in 14 years. It was the company’s first loss in the semiconductor chip unit in its entire history. Samsung’s profit decreased by 95% in Q1 2023. In Q2 2023, it remained at 96%. To cut losses, Samsung has scaled back production of semiconductor chips in recent months. Furthermore, the mobile division of the company helped it earn some profits.
In addition to this, positive growth was reported in the Samsung Display division. This unit of the company is responsible for making OLED panels for TVs and smartphones. Notably, the company delivered the OLED panels for Apple’s iPhone 15 series. According to recent information, the company will publish the full Q3 2023 earnings report by the end of October 2023.
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